Dominating the crypto narrative, crypto bears are pushing down on meme coins. However, Shiba Inu, clinging to a crucial support, hints at a bounce back. Will this result in a quick V-shaped reversal?
With the crypto market crashing, the meme coins have witnessed a significant downfall. Among the top losers, the dog team meme coins Dogecoin DOGE $0.16 24h volatility: 10.0% Market cap: $23.57 B Vol. 24h: $1.79 B and Shiba Inu SHIB $0.000012 24h volatility: 4.2% Market cap: $7.19 B Vol. 24h: $313.81 M have dropped by 9.92% and 9.11% over the past 24 hours.
While Dogecoin continues to dominate nearly 50% of the mean coin segment with a $51.29 billion market cap, Shiba Inu has declined to $12.71 billion. Amid the massive sell-off, Shiba Inu is standing at a crossroads near the $0.000021 supply zone.
Shiba Inu Price Analysis
In the 4-hour chart, the Shiba Inu price trend reveals a long-coming resistance trendline breakout rally. However, the bullish rally failed to surpass the 50% Fibonacci level at $0.00002468.
Leading to a sideways trend, the broader market correction eventually led to a double-top reversal, crashing to the 23.60% Fibonacci level at $0.00002121. The crucial Fibonacci support level coincides with the supply zone extending from the $0.000020 psychological mark to $0.00002125.
Photo: TradingView
The pullback phase has resulted in a bearish crossover between the 20 and 50 EMA line, reinstating the bearish alignment. Furthermore, the RSI line has plunged into the oversold zone, reflecting a surge in selling pressure.
However, the Shiba Inu price action hints at a potential Morning Star pattern at the crucial support zone. This aligns with the short-term oversold nature of Shiba Inu.
Whale Transfers 1.63 Trillion Shiba Inu
As Shiba Inu halts the freefall at crucial support, a notable transaction has been reported by Whale Alert. In a recent tweet, Whale Alert highlighted a transfer of 1.63 trillion SHIB tokens worth $39 million to an unidentified wallet, while this move comes as a buy-the-dip opportunity by the unknown wallet holder.
It also reflects the confidence of some investors in Shiba Inu. While the broader market expects the meme coin price to stabilize near the $0.000020 psychological mark, such signals are adding brownie points to such a narrative.
Massive Offloading as SHIB Falls
Amid the recent sell-off in Shiba Inu, the total balance-by-holdings in USD dropped from $22.99 billion on January 6 to $20.87 billion, reflecting an overall decline of 9.23%.
The $100,000 to $1 million price band saw a decline from $662.81 million to $653.44 million, a drop of 1.41%. Meanwhile, the $1 million to $10 million price band decreased from $3.16 billion to $2.99 billion, representing a 5.38% decline.
The largest decline was observed in the more than $10 million price band, which fell from $19.17 billion to $17.23 billion, marking a 10.12% decrease. This significant reduction highlights increased selling pressure across all major holdings, with the sharpest impact felt among the largest holders of Shiba Inu.
SHIB Price Targets
As the Shiba Inu hints at a bounce back from the crucial support zone with oversold RSI, the offloading warns of a correction.
Hence, the meme coin could experience a bullish comeback to retest the broken 38.20% Fibonacci level at $0.00002307. Considering the bullish dominance is sustained at the 23.60% Fibonacci level, the upcoming resistance levels remain at the 38.20% and 50% Fibonacci levels.
On the downside, the bearish continuation will likely retest the $0.00001853 support level.
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