Shiba Inu Faces Uncertainty as Whale Activity Declines and Price Consolidates

Shiba Inu (SHIB) has been on a wild ride this year, boasting a 162% surge in 2024.

Currently, SHIB’s price is at a crossroads. Key market signals, including the Relative Strength Index (RSI), whale activity, and moving averages, offer conflicting insights into its next move. This suggests that the coin is caught in a phase of uncertainty, with no clear trend emerging.

SHIB’s RSI stands at 46.45, indicating that it is neither overbought nor oversold. For over a week, the market has been relatively balanced, with neither buyers nor sellers dominating. This lack of strong momentum suggests SHIB may stay range-bound until clearer market signals emerge, making any significant price shifts unlikely in the short term.

The number of large holders, or “whales,” has dropped since November. The peak of 10,921 wallets holding over 1 billion SHIB has fallen to 10,862 by December. This decline suggests waning confidence among these major investors, which could weigh on SHIB’s price in the near future, as whale activity typically correlates with price movements.

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SHIB has found solid support at around $0.0000266. If this level breaks, the price could dip further to $0.0000241. On the upside, SHIB faces resistance at $0.0000297. A successful breakout could push the coin up by as much as 22%, reaching $0.000033. Additionally, the narrowing of SHIB’s moving averages signals weakening momentum, making a potential bearish trend more likely if the price fails to break past key resistance levels.

With mixed signals in the market, SHIB’s short-term future remains uncertain. Investors will need to watch closely for any shifts in whale activity or momentum to gauge whether the coin can break out or face further consolidation.

Alexander Stefanov