The recent brief surge of Shiba Inu cryptocurrency provided hope to investors but was followed by a sharp correction that returned most holders to losses.
Severe Correction of SHIB
Shiba Inu (SHIB) has experienced a dramatic correction, losing all gains and pushing most of its holders into negative territory. According to IntoTheBlock, over 80% of the total circulating supply is currently underwater, indicating unrealized losses for investors.
Rejection Under Resistance
As shown in the price charts, SHIB had a strong rally but was brutally rejected just below the 200-day moving average (approximately $0.0000145), a crucial resistance level. Several moving averages are grouped just below the $0.0000133 support zone, which the asset is currently hovering just above.
Analysis of Current Situation
The decline in large transaction volume raises concerns about the lack of support from large holders. RSI indicators show signs of waning buying momentum, leading to a plateau in volume. Despite the unfavorable conditions, SHIB continues to trade above a significant demand level, though the odds of further declines remain high.
The current situation with Shiba Inu raises questions about the cryptocurrency's future, as most holders are in losses and the market is closely monitoring developments.
