Shiba Inu (SHIB) Price Hits Pre-Pump Levels: What's Happening?
2024-12-22
Category: None

Shiba Inu has erased almost all of the gains made during the market recovery a month ago by retracing to pre-pump levels. There are concerns regarding the asset's condition and the actions of important market players in light of this steep drop. The decline in price indicates a loss of momentum as SHIB drops below important support levels; it is presently trading at about $0.00002217.
This retracement shows that the asset is open to additional declines as the bullish push from late November has fully faded. This steep decline has been attributed to a lack of buying pressure and waning enthusiasm among retail investors.SHIBUSDT Chart by TradingView">
A worrying pattern emerges from volume analysis: The sharp sell-off is accompanied by a spike in trading activity, suggesting that whales and large holders used the previous rally to sell off sizable chunks of their holdings. This supports rumors that early investors took advantage of the short-lived spike to lock in profits, leaving new investors vulnerable to falling prices.
The failure of SHIB to sustain its gains points to more significant market difficulties. Given that speculative activity has largely driven the asset's recent performance, the retracement to pre-pump levels indicates a lack of sustained interest from long-term investors. This sell-off also implies that Shiba Inu has not yet gained a strong following among its current members and potential newcomers.
Technically speaking, SHIB has dropped below the 50 and 100 EMAs, two critical markers for possible trend reversals. Around $0.0002047 close to the 200 EMA is the next crucial support level. SHIB may experience further drops in value if it is unable to maintain this level. The future of Shiba Inu is currently unknown.
Strong demand is essential to maintaining price growth and avoiding an excessive dependence on speculative rallies, as the sell-off highlights. SHIB may continue to face difficulties in the absence of new stimuli or rekindled investor interest, leaving its community anxious for indications of improvement.