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2 weeks before the year ends, the possibility of Shiba Coin dropping zero remains. Although the coin has been in a bear market since hitting an all-time in October, a reversal within the next few days could potentially lead to dropping a zero by the end of 2021.
In the last rally, Shiba gained 500% in a week and it’s the last time the coin dropped a zero. This rally made it among the 10 largest cryptocurrencies in the market.
Since then, the coin’s price has lost 60% from its peak and remains in the red. Shiba Inu coin is famous for its huge momentum and fanatic supporters who take every chance to market the coin.
This popularity has made it hit the 1 million investors mark. A milestone that only a few coins have achieved in less than two years after launch.
Price Action Indicators
A potential near reversal has the support of both the price action and technical indicators. On the higher time frame, the coin is currently trading at a key zone.
Previously, this area has been both a resistance and a support zone. Increasing the chances of the coin reversing at this level. Price action is a reliable market signal that investors use in making investment decisions.
Most buyers are waiting in this area for the right signal before getting into the market. At any moment, there could be a reversal that could push the coins price to the previous high and hopefully lead to the dropping of a zero.
The stochastic indicator also shows a loss in selling momentum. When the market is in an oversold position, it is unwise to continue holding sell trades. Hence, most short traders are likely exiting the market enhancing the bullish momentum.
Increase Whale Activity in the Market
Reports of huge buy transactions in the market are adding to the speculation the market could reverse soon. In the last two weeks, some of the biggest Shiba coin whales both Gimli and Hulk have been busy accumulating tokens.
The latest is Hulk who just bought 8 trillion coins worth over 250 million dollars. Gimli has also made three transactions in less than a month worth millions of dollars.
Investors are watching this closely with most interpreting it as a signal the momentum is shifting in favor of the buyers.
This is likely to trigger other buyers especially retail investors to get into the market. For a coin with over 1 million investors, an increase in the buying momentum is adequate to cause a reversal that could result in dropping another zero.
Effects of Shiba Coin Dropping Zero
Dropping a zero before the year ends could be a significant move that could trigger a buying craze just like it happened in the last rally.
The Combination of Shiba’s popularity and fear of missing out by retail traders will be key in pushing the coin higher enabling Shiba to go into the new year in bullish momentum.