Shiba Inu (SHIB), the popular dog-themed cryptocurrency, made headlines on Sunday, December 1, 2024, as it briefly breached the $0.00003 mark. This level had not been touched since March 2024, signaling a potential new yearly high for the asset. However, the excitement was short-lived as SHIB faced a correction, marking a 3.8% decline in its price within the last 24 hours. Despite this setback, SHIB has shown impressive gains in recent weeks, rising 16.3% in the past week, 18.4% over the last 14 days, 67.3% in the past month, and a staggering 254.8% since December 2023.
Why Did Shiba Inu Experience a Correction?
The sudden price pullback can be attributed to several factors. First, SHIB encountered significant resistance around the $0.00003 mark. After a substantial rally, many investors may have decided to lock in profits, contributing to the correction. Profit-taking is a common occurrence after such rapid price increases, especially when resistance levels are tested.
Additionally, broader market conditions played a role. Bitcoin (BTC), the leading cryptocurrency, failed to reclaim the $99,000 level after reaching a new all-time high of $99,645.39 on November 22, 2024. Bitcoin’s subsequent 3.4% dip may have affected the entire crypto market, including SHIB, as Bitcoin’s price often influences altcoin movements. The overall volatility in the market could also be a factor contributing to the short-term decline in SHIB’s price.
Can SHIB Hit $0.00004 Next?
Looking ahead, analysts are divided on SHIB’s next price movements. According to CoinCodex, SHIB could rise to $0.00006104 by December 5, 2024, representing a rally of approximately 105.8% from its current price. However, CoinCodex also predicts that SHIB’s price will face significant resistance if it surpasses the $0.00006 level. The platform anticipates that SHIB could experience another correction, returning to current levels by December 18, 2024.
There is also the possibility that SHIB may not breach the $0.00006 mark this year, given its history of volatility. Traders who are holding SHIB at a loss may choose to sell once prices increase, which could further contribute to downward pressure. Nevertheless, a potential rally could be on the horizon if Bitcoin manages to break the $100,000 barrier. Should that happen, SHIB could see another surge and possibly hit a new yearly high.
Shiba Inu (SHIB) continues to be one of the most volatile and exciting assets in the crypto space. While the recent correction has sparked concerns, the overall trend for SHIB remains bullish, especially in the longer term. With analysts predicting significant price movements, SHIB could experience another upward surge if broader market conditions align. As always, the path forward for SHIB remains uncertain, but its performance will undoubtedly be influenced by Bitcoin’s price action and investor sentiment in the coming weeks.
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.
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