Price Volatility of Shiba Inu If

CoinDesk reports:
SHIB’s price has dropped by 28% in just 3 days, reaching the bullish support level. Large transactions also decreased by over 53%.
At the time of writing this article, Shiba Inu (SHIB) finds itself at a significant price level, as the meme coin appears to be testing a key support level at $0.00001368. What does this mean? Well, recent price action and on-chain indicators may paint a mixed picture for SHIB’s short-term outlook. Therefore, it is worth looking into what’s next for SHIB.
Since March 5, SHIB has been consolidating in a bull flag pattern. This technical formation often precedes a breakout to the upside.
However, altcoin recently dropped by 28% in just three days, to around $0.000014, putting SHIB’s lower support level to a crucial test.
Giving the Whales a Breather?
The number of large transactions on the SHIB network has also dropped by over 53.3% recently. This significant decrease can be interpreted as a sign that whale activity may have cooled off.
A reduction in large investors could reduce volatility in the short term. However, it could also indicate that major participants lack strong directional bias, making SHIB more open to broader market trends.
Most still in the green
However, as data from IntoTheBlock shows, despite the mentioned declines, 61.63% of SHIB addresses are still profitable. According to this statistical data, most holders are still holding unrealized gains. The psychological implication here is that this may provide some protection against panic selling, as many holders have not yet faced losses.
However, this also means that if market sentiment turns bearish, there is still potential for profit-taking.
What’s next for SHIB?
The convergence of technical and on-chain indicators leaves SHIB in a state of indecision. The bullish flag pattern provides hope for a potential rebound. However, the sharp drop in whale activity and the majority of addresses still in profit indicate market uncertainty.
In the short term, all eyes will be on whether SHIB can maintain its latest support level. A convincing reversal could fuel bullish momentum and validate the flag pattern.
Alternatively, a breakdown could lead to further declines, possibly targeting the next major support area.