Shiba Inu Price Hits Key Inflection Point: Why SHIB Could Be a Buy Despite Whale Selloffs
The price of Shiba Inu ($SHIB ) has fallen sharply, dropping over 10% today and 22% over the past week. This downturn comes as some early Shiba Inu whales cash out profits in meme coins, including SHIB. CoinGape’s recent warning of a potential drop to the $0.000024 level has proven accurate. Despite the decline, SHIB's technical indicators suggest the possibility of a Santa Claus rally, with the token unlikely to fall further below the $0.0000234 mark.
Whale Selloffs Impact Shiba Inu Price
On-chain data reveals significant selloffs by whales, contributing to SHIB's price decline. One notable whale sold 250 billion SHIB tokens worth $6.05 million, according to Lookonchain. This whale originally spent just $3,800 to acquire 15.28 trillion tokens in August 2020.
Spot On Chain further reported that the same whale offloaded an additional 150 billion SHIB tokens on the Gemini exchange. Earlier in November, the whale, identified as '0xd6b,' sold 100 billion SHIB tokens. Despite these transactions, the whale still holds 2 trillion SHIB, valued at $48.38 million, with an estimated profit of $108 million.
The broader crypto market weakness and panic selling triggered by whale activity have led to significant liquidations. According to Coinglass, traders closed nearly $5 million in SHIB-related long positions over the past 24 hours.
Community Concerns Amid Price Decline
The SHIB community has expressed concerns over the falling burn rate of the token, which has dropped by 70% according to the Shibburn portal. Despite these challenges, the community remains optimistic about a price recovery, driven by anticipation for SHIFU and TREAT tokens.
Technical Analysis: Signs of a Rebound
SHIB’s intraday price ranged between $0.000023 and $0.000026 before settling at $0.0000241, rebounding from the 0.5 Fibonacci retracement level. Increased buying activity on platforms like Crypto.com and CoinEx suggests growing investor interest at this price point.
Analysts warn that the $0.0000234 level is critical for investors to monitor. If SHIB holds this support, it could potentially rally to a high of $0.0000998 during the next bull market. Resistance at $0.000037 is identified as the next key hurdle for a breakout.
Outlook for Shiba Inu Price
With on-chain and technical indicators showing improvement, the Shiba Inu price appears poised for a parabolic rally. Analysts suggest investors should prepare for potential volatility in mid-January, coinciding with key market events like Donald Trump’s inauguration day.
While short-term risks remain, SHIB’s current price levels may offer a compelling buying opportunity for long-term investors anticipating a bullish 2024.
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