Shiba Inu (SHIB) New Low Reached: Reversal Too Far?

After plunging another 65% from its peak earlier in the year, Shiba Inu (SHIB) has now reached a new low. This formerly well-liked meme coin is still in dire shape, even with a brief rebound in large transactions. The technical analysis paints an accurate picture of SHIB’s difficulties.

The price has been steadily declining, as seen on the chart, and it most recently dropped to about $0.00001584. The downward trending 50, 100 and 200 Exponential Moving Averages suggests persistent bearish momentum. A significant portion of the gains SHIB made during its peak periods have been lost due to this continuous downtrend caused by the lack of demand.

Analyzing the on-chain data provides a bit more context. There have been 29 SHIB transactions in the last 24 hours totaling 1.15 trillion SHIB in value. Even though this activity seems substantial, it is important to remember that on July 25, 2024, the large transaction volume reached a seven-day high of 55 and a seven-day low of 15, which was recorded on July 28, 2024. This implies that although some movement has occurred, it has not been steady enough to lead to a long-term healing process.

Significant fluctuations have also been observed in the high transaction volume, which peaked on July 29, 2024, at 1.95 trillion SHIB. The general mood of the market is still cautious despite this brief upswing. Even with large recent volumes, the overall bearish trends have not been reversed.

The story is similar, as seen by wider market indicators. According to the token’s summary, as of right now, only 48% of SHIB holders are profitable, with 47% experiencing a loss and 5% breaking even. The difficulties SHIB investors have encountered lately are highlighted by this distribution.

Furthermore, a considerable amount of SHIB is held by a small number of key players, as the 73% concentration of large holders shows.

Source