Recently, the price of Shiba Inu coin ($SHIB) has dropped significantly, with a daily decline of over 10%, accumulating a 22% drop over the past week. This decline occurred as some large holders (whales) took profits, with one whale even conducting a large-scale sell-off of SHIB within a few days. Nevertheless, technical data suggests that SHIB may rebound at the current price level, and further downside is limited, with $0.0000234 potentially being a strong support level.
Whale sell-off drives price adjustment
On-chain data shows that the whale sell-off activity is the main reason for the recent price adjustment. According to Lookonchain's analysis, a whale sold over $6 million worth of 250 billion SHIB in the past week. Notably, this whale purchased approximately 1.528 trillion SHIB for only $3,800 in August 2020, meaning that even at the current price, this whale's investment return remains considerable.
In addition, the same whale has continued to reduce its holdings through the Gemini platform, further intensifying selling pressure in the market. While these large transactions have triggered market volatility, the whale still retains about 200 trillion SHIB, valued at approximately $48 million, and the expected profit has approached $108 million.
Market sentiment and concerns over declining burn rate
The SHIB community has recently expressed concern over the declining token burn rate. According to Shibburn data, the burn rate of SHIB has decreased by 70%, which may affect the long-term supply contraction effect. However, despite the challenges, the SHIB community remains optimistic about the future, especially with the introduction of new tokens like SHIFU and TREAT, and the market's positive sentiment towards SHIB continues.
Technical aspect: support level and rebound opportunity
From a technical perspective, SHIB's price is currently fluctuating between $0.000023 and $0.000026, finding support near $0.0000241, close to the 0.5 Fibonacci retracement level. Increased buying volume across multiple trading platforms indicates that the current price level has attracted considerable interest from investors.
Analysts point out that $0.0000234 is a key support level. If SHIB can stabilize around this price level, it may experience a rebound in the coming weeks, with a target price potentially reaching $0.0000998. Breaking through $0.000037 will be the next key resistance level.
Potential buying opportunity
As market sentiment gradually stabilizes, the technical indicators for Shiba Inu coin are also showing signs of improvement. Although there may still be some volatility in the short term, the current price level offers an attractive buying opportunity for long-term investors preparing for the bull market in 2024. Investors should closely monitor market trends, especially for significant market events that may occur in mid-January, such as the U.S. presidential inauguration.
