The price of Shiba Inu (SHIB) has plummeted by over 10% in the last 24 hours and a staggering 22% in the past week, reaching $0.000024. As CoinGape warned earlier, the token has now hit a crucial support level. Despite the downturn, technical indicators suggest that SHIB might be gearing up for a seasonal “Santa Claus rally,” potentially rebounding from its recent low of $0.0000234.
Whale Activity Triggers Panic Selling
Recent on-chain data reveals that SHIB whales have played a significant role in the token’s downward spiral. Lookonchain reported a notable sell-off, with a whale offloading 250 billion SHIB tokens worth approximately $6.05 million. This same entity, which accumulated 15.28 trillion SHIB for just $3,800 in August 2020, also sold an additional 150 million tokens through Gemini exchange.
Although the whale still holds 2 trillion SHIB tokens valued at $48.38 million, its actions have sparked broader panic selling among retail investors. Over $5 million worth of SHIB long positions were liquidated in the last 24 hours, according to Coinglass, amplifying the downward pressure.
Community Response and Burn Rate Concerns
The SHIB community has expressed concern over the declining burn rate, which has dropped 70% this week, according to Shibburn. Despite this, optimism remains, driven by upcoming projects like SHIFU and TREAT tokens, which could reinvigorate investor sentiment.
GM Friends ☕️☀️
— $SHIB KNIGHT (@army_shiba) December 19, 2024
The dump was unexpected and brutal, I hope market will go up soon. pic.twitter.com/MeJI5VquDb
Potential for a Santa Claus Rally
Shiba Inu is trading near an inflection point, with its intraday low and high at $0.000023 and $0.000026, respectively. Current trading activity on platforms like Crypto.com and CoinEx indicates increased buying interest, hinting at potential recovery.
Analysts have identified $0.000037 as the next key resistance level for SHIB, while the token could peak at $0.0000998 during a broader bull market next year. For now, $0.0000234 remains a critical support level to watch.
As market sentiment shifts and on-chain metrics improve, Shiba Inu investors are cautiously optimistic about a parabolic rally, potentially fueled by increased activity and a favorable macro environment heading into 2024.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Shiba Inu (SHIB) Eyes Rebound, Rising Burn Rate and Key Support Signal Potential 117% Rally
About The Author
