The recent rise of the popular meme coin Shiba Inu was quick, unexpected, and sadly short-lived. The crypto asset broke the local resistance level the other day, but then fell below that level again the next day. So what’s behind this decline?
Whales push down Shiba Inu (SHIB)
According to on-chain data, the total number of large transactions on the network increased by more than 11%. In terms of the massive movement of funds between wallets, this is a clear indication that whales were involved in the latest pullback.
Koinfinans.com Another piece of data suggesting a whale-backed rebound, as we have reported, comes from the abnormal volume of sales across different exchanges that would not have been possible with the support of small retail investors alone.
Basic deficiency in Shiba Inu (SHIB)
Explosive rallies like SHIB did yesterday are extremely attractive and often make people enter assets without thinking about volatility. Meme coin showed some traders yesterday why it is important to assess their risk and hedge your positions.
Big Rally from Shiba Inu: Here are the Details
After the sudden breakthrough of the 200-day moving average, there was no support below the $0.0012 price level, which has created significant selling pressure in the market for the meme coin.
General situation of the market
Alongside the troubled situation of the Shiba Inu (SHIB), the cryptocurrency market in general also saw a decline due to its assessment of the unchanged macroeconomic situation for digital assets. The lack of demand for risky assets and the continued outflow of funds from both crypto and exchanges could lead to a continuation of the downtrend.
You can follow the current price action here.