Key Takeaways:
Shiba Inus price upsurge faces major resistance at $0.0002668 because of a major transfer of 4 trillion SHIB by whales. Shiba Inu is one of the most popular meme coins available in the crypto market and is a well-established token in the market. From its inception as a viral meme coin, it has a community base that has turned to more endeavors. The features of the Shiba Inu ecosystem constitute a decentralized exchange with a layer 2 protocol for Ethereum and two NFT collections. In this short span after the launch, Shiba Inu has overgrown its meme coin status evolved into a decentralized ecosystem, and grown its utilities with many real-world partnerships and projects.
Shiba Inu faced a substantial transfer of 4 trillion tokens valued at approximately $99 million between two unknown wallets. This transaction created speculation about the future of the token. These large whale transactions create volatility in the market. This creates an urge to sell or shift positions in the community.
The coincidence of the SHIB price upsurge and this massive transfer of tokens increased the caution among investors. The value of SHIB has reduced by almost 5% with a drop in market capitalization by 5.30% to $1.419 B.
Stance of Federal Reserve in Rate Cuts.
According to the chairman of the Federal Reserve Jerome Powell, the US economy does not require any immediate rate cuts. This approach caused a reduction in the expectation of a December rate cut. This remark impacted the crypto market with a slight downtrend.
This remark caused a decline in the value of Bitcoin by 1.5% and reached $87,751. Other cryptos including Ethereum and SHIB also faced similar declines. The value of SHIB declined by 2.5 % to $0.00002469. The decision of the FED may prevent some investors from taking high-risk decision. The crypto community appears to be in a state of shock after the decline.
Technical analysis of SHIB
According to the technical analysis of SHIB, the token is facing significant resistance around the level of $0.000002600. The price surge of the token has been capped at this level in recent days. It struggles to maintain a momentum beyond this threshold limit. On the other hand, SHIB gets support at approximately $0.00002480 in which the price gets rebounded in the past sessions.
In the middle of these price fluctuations, the trading volume of SHIB has reduced by 50%. This reduction can be attributed to reduced interest or activity in SHIB and its derivatives. Moreover, the reduction of interest in SHIB contracts by 3% is an indication traders may be closing their positions rather than opening new ones. However, the developers of SHIB expressed optimism about the potential of the token predicting a possible rally to $0.00006.
Future of SHIB: What You Need to Know?
The increased whale activity suggests caution. The increased transaction volume and spikes in the price of the token a signals of strong momentum. The large-scale selling of the token by the whales signals strong momentum in the market. These whale transactions can cause a downward trend in the price of SHIB. But if this transaction causes a redistribution of SHIB to a larger audience then it could lead to broader ownership of SHIB. If the customer base of SHIB is increasing then there is a higher probability of price stabilization.
To understand the future potential of SHIB it is essential to watch the upcoming resistance levels. If the token managed to surpass these resistance levels then that could support further gains of the coin. Market sentiment is a factor that causes fluctuations in the crypto market this includes social media hype, speculative bubbles, and community-driven campaigns that cause price hikes. Usually meme coins upsurge during market bubbles but struggle to maintain their upsurge in the bearish market. The recent performance of the token is impressive but the users need to be cautious before making investments.
The current trading volume of SHIB is $3,122,213,973 and this indicates a decline of 46.00% from the previous day. The market capitalization of the token is $13,770,534,339.
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