Shiba Inu (SHIB), one of the leading meme coins in the crypto market, has experienced a downward trend in recent times, which has negatively impacted investor sentiment. According to CoinGecko, the market has contracted by almost 2% within the past 24 hours. This decline is largely attributed to external factors, such as the US Federal Reserve’s decision to increase interest rates and the resurgence of concerns regarding banking crises.
The latest market data reveals that SHIB is down nearly 5% in the current timeframe, indicating that it is a must-avoid coin in the coming days. However, recent reports show that crypto whales have been accumulating SHIB, despite its depreciating value. WhaleStats, a crypto whale tracker, reveals that the token is still the most traded token by whales and that their accumulation might be part of a bigger investment strategy.
Whales also hold the majority of SHIB’s supply, with 100 whales controlling up to 31% of the total supply. However, their accumulation has been met by bearishness, with SHIB going downward. This decline can be explained by the dip in major cryptocurrencies such as Bitcoin and Ethereum in the past few days. Despite Bitcoin facing a bullish break according to a Twitter analyst, SHIB’s current performance might be held back by developments outside of SHIB.
At the moment, the token is below the $0.0000096 resistance level. However, the price seems to stabilize below this level, which may indicate a bullish breakout. If the bulls manage to break through $0.0000096, investors and traders could then target $0.00001098 comfortably. However, investors and traders should monitor how Bitcoin and Ethereum move in the coming weeks. Any bearishness within these markets can negatively affect SHIB’s price movements in the future.
Investors and traders should also monitor the macroeconomic situation, as this will also benefit the bulls. The next critical date is May 10, when the Consumer Price Index data will be released. If the core CPI stays high or remains stagnant, we can expect the Federal Reserve to raise interest rates in the coming months.
In the short term, investors should be wary of short sellers temporarily taking over the market. CoinGlass data shows that long buyers are outnumbered by short sellers by a wide margin. Keeping these in mind should keep SHIB’s profitability in the green for investors. Overall, investors and traders should keep an eye on SHIB as it continues to mature in the crypto market.
