Why Shiba Inu Is Falling: Analysis and Future Outlook
Over the past week, the price of Shiba Inu has dropped significantly by 25%, hinting at the end of the rally. What is the reason for this, and how will Shiba Inu behave next?
Why Is Shiba Inu Coin Price Falling?
Shiba Inu latest rally has generated optimism among market participants, who are discussing the potential of the coin to surpass other popular cryptocurrencies, such as Dogecoin. In fact, the memecoin sector has performed better than the rest of the cryptocurrency market, with multiple gains seen for popular coins such as DOGE, SHIB, PEPE, Floki, and Bonk.
However, SHIB's bullish momentum has weakened in recent days, as indicated in the Shiba Inu news today. And several factors point towards a possible new wave of market correction.
Whale action
A 250% one-month gain has attracted the attention of big players to memecoin. The Shiba Inu coin price followed Bitcoin's records to hit a new all-time high for the first time in two years.
The reversal in Shiba Inu coin price came as a reaction to the sudden selling, as most long-term traders and whales decided to lock in profits. About 4 trillion SHIB tokens were moved in just one day last Sunday. The following day, whales moved a total of 17.62 trillion SHIBs. Such large moves signaled imminent price hikes or investors' willingness to list Shiba Inu for sale.
From the Shiba Inu coin news agenda, on Monday, trading firm Cumberland moved 332 billion SHIB, triggering a 7% drop in price in a 24-hour period. As the firm sent the tokens to an unknown wallet, the community considered it a signal that the memecoin price would soon recover. However, Etherscan data showed that the wallet was linked to the Robinhood exchange, hinting at a possible sell-off.
🚨 332,427,690,902 #SHIB (10,858,584 USD) transferred from #Cumberland to unknown wallethttps://t.co/n9ftIpy60r
— Whale Alert (@whale_alert) March 11, 2024
Activity falls
On March 5, the Santiment platform recorded 55,000 active addresses related to Shiba Inu coin, indicating high engagement and increased interest in the coin. By this time, the figure had noticeably dropped to 11,800 active addresses, which may also indicate a drop in Shiba Inu coin price.
Other Shiba Inu news show that the project team has started burning Shiba Inu tokens. For example, over the past 24 hours, 298.71 million tokens were withdrawn from circulation, i.e., token burning increased by almost 390%. Nevertheless, this did not stop the price from falling.
Shiba Inu Price Prediction
Does the Shiba Inu price have a chance to resume its bull run in the near term? Will Shiba Inu reach 1 cent? Let's take a look at the Shiba Inu coin price prediction.
Source and Copyright © TradingView
The asset encountered a resistance level at $0.0000456, after which the downward movement started. The nearest resistance level is at $0.000037. A break above may set the beginning of a new bullish momentum. The challenge will be to retest the all-time high above $0.00008.
The bears continue to actively push the price lower. Despite ecosystem fundamentals, community support, token burn team actions, and other initiatives, it appears that Shiba Inu's recent rally has been closely tied to Bitcoin's new all-time high. With this in mind, it will be difficult for Shiba Inu to test its ATH again in the near term. But when will Shiba Inu go up?
The RSI index is at 45, indicating a balanced buying and selling dynamic, yet it is showing signs of a return of buying momentum. Bullish sentiment is indicated by the positions of the 50-EMA and 20-EMA indicators.
What do the experts say?
What do experts say about Shiba Inu coin future? Crypto analyst Ali Martinez gave a bullish prediction for the price movement of Shiba Inu. He paid attention to the symmetrical triangle formed on the SHIB chart. He believes that a close above the nearest resistance level of $0.000038 could push Shiba Inu coin 40% rally. If the coin falls below the $0.000033 support level, the bearish sentiment will intensify.
#ShibaInu forms a symmetrical triangle on the 4-hour chart. A sustained close above the $0.000038 resistance could trigger a 40% bullish breakout, pushing $SHIB toward $0.000052.
— Ali (@ali_charts) March 9, 2024
Watch out for $0.000033 since losing this support level will invalidate the bullish outlook. pic.twitter.com/mr01I6xIry
Crypto analyst Alan Santana made a bolder Shiba Inu coin prediction. The analyst believes that the coin is ready for a breakout and SHIB has all the prerequisites for 822 percent growth. However, it is important to note that his prediction is rather focused on long-term investors.
