Shiba Inu Profits Take a Sharp Hit: What’s Going On?
The popular meme coin Shiba Inu (SHIB) has experienced a sharp decline in profits, dropping as much as 62% over the past week. After a promising rally earlier this month, SHIB’s price has reversed, leaving investors worried. The sudden downturn has shifted market sentiment, leading to increased selling pressure and declining confidence in the token’s short-term future.
Key Factors Behind the Decline
At the beginning of the year, optimism surrounding SHIB was high, with approximately 140 trillion SHIB in profit — a stark contrast to the current number, which sits at just 57 trillion SHIB. This significant contraction in profitability highlights how quickly gains can vanish in the volatile world of cryptocurrency.
On-chain data reveals a trend in investor behavior, shifting from accumulation to liquidation. Exchange net position change data shows consistent increases in exchange inflows, an indicator that holders are moving their assets closer to liquidation. Rising exchange balances typically precede further price drops as selling pressure accelerates.
Market Insights and Analysis
As of this writing, Shiba Inu is trading around $0.00000857, slightly above the critical support level of $0.00000836. Over the past week, SHIB has dropped by 9.6%, struggling to maintain stability. A breakdown below $0.00000836 could push the price even lower, potentially toward $0.00000786, deepening the ongoing bearish phase.
However, not all hope is lost. A strong defense of the $0.00000836 support level could lead to a bounce back toward $0.00000898 or even higher if the 100-day EMA turns into a new support level. This would stabilize SHIB’s price action and potentially invalidate the bearish outlook.
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Disclaimer
This article is for informational purposes only and should not be taken as financial or investment advice. Cryptocurrency markets are highly unpredictable, and investing always carries risks. Make sure to conduct thorough research and consult a financial professional before making any big decisions.
