Shiba Inu Coin Price Drops 10% Amid Record $426 Million Sell-Off
Shiba Inu Coin Price Analysis – Shiba Inu (SHIB), the leading meme coin, has experienced a 10% price drop in the past 24 hours, following a large-scale profit-taking event by traders. On January 7, a significant sell-off saw $426 million worth of SHIB being liquidated, marking the largest single-day selloff since 2022. This surge in selling pressure could further extend SHIB’s price decline, raising concerns among investors and traders alike.
SHIB Sellers Cash Out in Record Numbers
The recent decline in SHIB’s price can be attributed to a substantial spike in its Network Realized Profit/Loss (NPL). On January 7, the NPL for SHIB reached a staggering $426 million, which represents its highest single-day value since February 2022.
The NPL indicator measures the difference between the last sale or movement of an asset and its current market price, helping investors gauge how much profit or loss is being realized on the network. When NPL spikes significantly, it indicates that a large portion of SHIB held by investors is being sold for profit. This increase in sell pressure often triggers a price decline, particularly if the market cannot absorb the additional selling volume.
RSI Indicator Confirms Increasing Selling Pressure
Alongside the NPL surge, SHIB’s Relative Strength Index (RSI) further confirms the growing selling pressure. As of the latest data, SHIB’s RSI is 41.96, which is below the neutral 50-line and in a downward trend. The RSI is an important market indicator that reflects whether an asset is oversold or overbought. Readings above 70 suggest an overbought market, while values below 30 indicate an oversold market that may experience a rebound. Given SHIB’s current RSI of 41.96, it points to increasing selling pressure, signaling a weakening market for the meme coin. If this trend continues and the RSI heads closer to 30, SHIB’s price could fall further.
Shiba Inu Price Prediction: More Downside Risks
On the daily chart, SHIB has been trading within a descending parallel channel for the past 30 days. This bearish pattern is characterized by two downward-sloping parallel trendlines, indicating lower highs and lower lows, which suggest sustained selling pressure. If SHIB continues to follow this pattern, the price could drop to $0.000018.
However, if the market sees a shift and traders begin to accumulate SHIB, the current bearish outlook could be invalidated. A reversal in market sentiment could push SHIB’s price towards $0.000025 and potentially as high as $0.000033.
Market Outlook and Trading Considerations
The significant price movement and volatility surrounding Shiba Inu (SHIB) serve as a reminder of the risks associated with meme coins, which can be highly susceptible to fluctuations based on market sentiment, profit-taking activities, and trading volume. The future price of SHIB will depend on whether selling pressure persists or if traders begin to accumulate the token for a potential rebound.
For now, the ongoing market dynamics suggest further downside risk for SHIB, and investors should remain vigilant to the evolving price action, RSI levels, and broader market trends before making decisions.
Conclusion
The 10% decline in Shiba Inu’s price reflects the significant selling pressure driven by profit-taking, with $426 million worth of SHIB sold in a single day. As SHIB continues to face headwinds from rising NPL and RSI indicators, traders and investors will need to monitor market conditions closely to assess if the meme coin can recover or if further price declines are on the horizon.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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