CoinDesk Reports:
SHIB’s price has dropped 28% in just 3 days, reaching key bullish support levels. Large transactions have also decreased by over 53%.
As of the writing of this article, Shiba Inu (SHIB) finds itself at a significant price level, with meme coins seemingly testing a critical support level at $0.00001368. What does this mean? Well, recent price movements and on-chain indicators paint a mixed picture for SHIB’s short-term prospects. Therefore, it’s worth examining what’s next for SHIB.
Since March 5th, SHIB has been consolidating under a bullish flag pattern, often a precursor to an upward breakout.
However, altcoins have recently dropped by 28% in just three days, hovering around $0.000014, putting SHIB’s lower support levels to a crucial test.
Taking a Breather?
Large transactions on the SHIB network have also decreased by over 53.3% recently. This significant reduction could indicate a cooling off of whale activity.
A decrease in significant investors may temporarily reduce volatility. However, it may also suggest that major participants lack strong directional biases, leaving SHIB more open to broader market trends.
Mostly in the Green
Yet, despite the above declines, 61.63% of SHIB addresses remain profitable, according to data from IntoTheBlock. This statistic suggests that most holders still hold unrealized gains. Psychologically, this could provide some protection against panic selling, as many holders have yet to face losses.
However, it also implies potential profit-taking room if market sentiment turns bearish.
What’s Next for SHIB?
Technical and on-chain indicators leave SHIB in a state of indecision. The bullish flag pattern offers hope for a potential rebound. However, the sharp decline in whale activity and the majority of addresses still in profit indicate market uncertainty.
In the short term, all eyes will be on whether SHIB can maintain its latest support levels. A convincing reversal could bolster bullish momentum and validate the flag pattern.
Alternatively, a breakdown could lead to further declines, potentially targeting the next major support area.