Shiba Inu (SHIB) Price Shows Signs of Exhaustion After 19% Weekly Gains

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As a researcher with extensive experience in cryptocurrency market analysis, I find myself constantly amazed by the rollercoaster ride that is Shiba Inu (SHIB). The coin’s recent 19.01% surge in seven days has been quite captivating, especially considering its position as the second-largest meme coin by market cap – a testament to its enduring popularity.

As an analyst, I’m observing that the price of Shiba Inu (SHIB) is exhibiting significant fluctuations, coupled with a blend of technical indicators. Over the past week, there has been a 19.01% upward surge in its value, which has solidified SHIB’s second place among meme coins by market capitalization, just behind Dogecoin (DOGE).

As a researcher, I’m observing an intricate technical analysis of the coin’s performance. The Relative Strength Index (RSI) is gradually easing back from overbought territories, hinting at possible short-term corrections. Additionally, there seems to be less whale accumulation, which could be a sign of potential market adjustments.

SHIB RSI Is Down From Overbought

The drop of SHIB’s Relative Strength Index (RSI) from 85 to 51.8 suggests a noticeable decrease in purchasing enthusiasm. At an RSI level of 85, it signified that SHIB was excessively overbought, suggesting that buyers had been strongly in control of the market.

In simpler terms, an RSI (Relative Strength Index) of 51.8 indicates a market that’s finding balance. This is because the forces driving purchases and sales seem to be roughly equivalent, after a phase where traders were cashing in on their profits.

During SHIB’s peak at $0.000033, the historical Relative Strength Index (RSI) reached almost 90, signaling an extremely overbought state that wasn’t likely to last. The recent dip to 51.8 indicates a beneficial consolidation period instead of a trend flip, as RSI values between 40-60 generally suggest market equilibrium.

During this temporary drop in price, it’s not necessarily indicating the demise of the upward trend. Instead, it provides an opportunity for healthier, long-term price development by avoiding excessive market saturation.

Whales Are Not Accumulating Shiba Inu

As a crypto investor, I’ve noticed that the decrease in Shiba Inu (SHIB) whales could be a sign that major holders are cashing out their profits or trimming down their investments amidst the recent price surges.

As an analyst, I’ve observed that whale investors, with substantial market influence due to their sizeable holdings, frequently shape market trends. The recent gradual withdrawal of these whales might indicate a note of caution regarding the current valuation of Shib.

The drop from 11,013 to 10,858 wallets holding over 1 billion SHIB represents a loss of 155 major holders in just one month. This distribution of tokens from large to smaller holders typically creates selling pressure and could signal a weakening bullish sentiment.

Nevertheless, the redistribution process leads to a growing decentralization of Shib token ownership, which could promote long-term price stability, even amidst temporary selling pressures.

SHIB Price Prediction: Is a 17% Correction Imminent?

When the price of Shiba Inu drops below the shortest Exponential Moving Average (EMA), it indicates a weakening momentum in its current upward trend, suggesting that the bullish momentum may be fading.

As long as the Exponential Moving Averages indicate a longer-term bullish trend, the short-term price movements seem to be hinting at an increase in downward pressure.

Currently, the price stands at a crucial point where it might experience substantial fluctuations, potentially going up or down. If the market turns bearish, the Shiba Inu (SHIB) price could dip to test the support levels of $0.000026 and $0.000023, which would equate to a 17.8% decrease from its current position.

If the bulls take over, the Shiba Inu (SHIB) price might attempt to reach its latest peak of $0.000033 once more, and could even climb higher towards $0.000040. This would represent a 42% increase from its current value.

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2024-12-03 22:37