This post may contain affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through a link.
Shiba Inu Coin price fall is losing momentum and hence creating the possibility of a reversal soon. The coin has already lost 50% of its peak price last month indicating the strength sellers have had on it recently.
Price action signals indicate the asset is in an oversold position. This in technical analysis is a signal to anticipate the likelihood of a reversal.
Naturally, markets have an up and down movement. It is the general rule across all the asset classes including forex and stocks. As an investor, your task is to anticipate the right direction through the use of both fundamental and technical analysis.
Whale action in the market
Recently, there have been some whales buying a huge amount of Shiba tokens. This assists in the momentum building for the buyers. For an asset with a market valuation of 28 billion dollars, a transaction worth at least 1 billion dollars is material and could influence the price direction.
This is what happened recently after a whale bought 20 trillion coins worth over 1 billion dollars. Such a move indicates there could a rally soon.
Shiba Coin Burning
The amount of coins burnt is accelerating. It is a new strategy most decentralized tokens are adopting to make their coins deflationary. Burning means reducing supply hence boosting the price.
Currently, there are over 500 trillion Shiba coins in circulation. This huge number creates a barrier to faster price growth. Hence only reducing supply and increasing supply could trigger a substantial price rise.
Eventually, as more coins exit circulation, it is going to affect the price. An immediate reaction would be to reverse the current downward trend. After accomplishing this, the only remaining option for the coin is to embark on a new rally.
Bear Cryptocurrency market
Overall, the cryptocurrency market is in bearish momentum. Most of the major currencies have been recording falls recently. Some of these include Bitcoin. Litecoin, Ethereum, and Dogecoin.
This is a clear indicator that Shiba is not alone. The cryptocurrency market tends to move in one direction most of the time. A rise in one of these major coins usually triggers other coins to rise as well. The same happens with a price fall.
The good news is that some of the larger coins are starting to go green and this could catch up with the others as well.
The shiba inu coin seems to be in a consolidation phase whereby not much activity is happening. With the strategic buyers coming in, it is just a matter of time before there is adequate momentum build-up.
Some of the Shiba new utilities such as swapping and Shiboshis are starting to get market attention. For the NFT Shiboshis, they are already recording price gains. This is an indicator the market is ready for such solutions and could drive the buying frenzy.
The number of Shiba token investors has been increasing tremendously hitting the 1 million mark. All these factors indicate a coin whose market attraction is growing. This will inevitably trigger a reversal soon that could see the price hitting an all-time high again.