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Shiba Inu has experienced a dramatic correction, losing gains and pushing most of its holders into negative territory following a brief but promising rally that temporarily lifted it above $0.000015. Over 80% of the total circulating volume, or an astounding 789.98 trillion SHIB, is currently out of the money, meaning that the majority of investors are sitting on unrealized losses, according to IntoTheBlock data.
SHIB brutally rejected
As can be seen from the price chart, SHIB had a strong rally but was brutally rejected just below the 200-day moving average (approximately $0.0000145), a crucial resistance that has traditionally determined long-term momentum. Several moving averages are grouped just below the $0.0000133 support zone, which the asset is currently hovering just above.
The $0.0000125 or even $0.0000110 zone could be easily revisited by SHIB if this level fails. Even more worrisome is the precipitous decline in large transaction volume, which is a metric frequently used to monitor whale activity. Big holders have become eerily silent following a brief spike that matched the peak of SHIB's price.
SHIB not picking up
This lack of conviction from whales raises the possibility that short-term speculation, rather than significant accumulation, was the driving force behind the recent surge. Additionally, RSI indicators are showing signs of waning buying momentum as they have left overbought territory, and volume is beginning to plateau. Technical rejection and overwhelmingly negative holder profitability make SHIB especially susceptible to further declines.
The one bright spot is that SHIB continues to trade above a significant demand cluster in spite of the alarming numbers. A bounce could occur if buyers return to current levels and the mood of the market as a whole improves. The fact that almost 800 trillion SHIB are underwater, however, makes it obvious that recovery will not be easy.
Technically and emotionally, SHIB is now back where it began. The market is closely observing to determine whether this was merely a failed breakout or the start of another protracted decline, and the euphoria has faded and holders are bleeding.
Vladislav Sopov
U.Today Editorial Team