New York, United States – The Shiba Inu cryptocurrency has been experiencing a significant drop in value, causing concern among investors. With a 40% decrease in price over the past eighteen days, traders are closely monitoring the situation to see if the retracement will continue.
During the recent market rally, large holders of Shiba Inu, known as whales, began to take profits while smaller retail investors continued to buy the meme coin. This shift in behavior among whales has added to the uncertainty surrounding the cryptocurrency’s future price movements.
Technical analysis shows that the retracement in Shiba Inu has not yet reached its conclusion. The market structure remains bullish in the 1-day timeframe, with the Relative Strength Index (RSI) above the neutral 50 level. However, the momentum has slowed down significantly, with selling pressure starting to increase.
On-chain metrics suggest that Shiba Inu may be entering a consolidation phase as prices continue to fall. Open Interest in the cryptocurrency has decreased, indicating that speculators are hesitant to make bets on the coin. Despite the downturn, holders of Shiba Inu have been accumulating the cryptocurrency, preparing for a potential future rally.
As the price of Shiba Inu heads towards the Fibonacci golden pocket, analysts predict that the cryptocurrency may consolidate within that range before experiencing a potential bullish reaction. The MVRV indicator still shows a positive reading, indicating that a portion of holders are still in profit.
In conclusion, the future of Shiba Inu remains uncertain as traders monitor the cryptocurrency’s price movements closely. While the recent retracement has caused concern among investors, there is still hope for a potential recovery in the near future. As always, it’s essential for investors to conduct thorough research and make informed decisions when trading cryptocurrencies like Shiba Inu.