The price of the Shiba Inu (SHIB) has experienced a notable spike of 65% over the past week, attracting major attention from both retail and institutional investors. However, following this rally, SHIB saw a sharp decline, taking it to the critical support level at 0.00002411 USD.
This price movement has raised concerns, especially about the actions of long-term investors (LTHs), whose actions suggest that SHIB’s future recovery may not be smooth. as originally expected.
Shiba Inu Investors Are Worried
Over the past 24 hours, the Shiba Inu “age of consumption” index—a key indicator for tracking the movement of long-held coins—rose to its highest level since March. The spike in activity represents the largest movement of SHIB tokens held by LTH in the past eight months. These LTHs, normally the mainstay of asset market stability, are moving their tokens more than usual.
Increased activity from long-term investors signals uncertainty, with many investors possibly rethinking their HODLing strategies. Such moves are often seen as negative signals, showing that LTH is no longer very confident about the coin’s short-term prospects.
Active deposits, an index that tracks the number of unique addresses transferring their SHIBs to the exchange, have also seen a significant decline. After a spike in activity earlier in the week, the number of active deposits has fallen, indicating that fewer investors are looking to sell their holdings in the near future.
This could be a sign that investors are withdrawing from the market, perhaps waiting for more favorable market conditions or a clearer trend. The decline in operating deposits suggests there may be less immediate selling pressure, which is a positive sign for SHIB in the long run.
SHIB Price Prediction: Maintaining Upward Momentum
Currently, the price of Shiba Inu is at 0.00002411 USD, down 13% in the last 24 hours. This correction, while not drastic, erased a large portion of the gains from the recent 65% rally, making investors more cautious.
Despite this correction, SHIB is showing signs of stabilization around the critical support level at $0.00002267, which has held firm over the past few days. If this support continues to hold, SHIB could start an uptrend again, with the next resistance target at $0.00002976.
However, if SHIB fails to maintain this support and slips below $0.00002267, the cryptocurrency could face further downward pressure. A break below this level opens the door to a drop to $0.00002093 or even lower, nullifying the current positive outlook. Such a move suggests SHIB is in for a prolonged period of consolidation or bearish activity, especially if selling pressure from LTH continues.