In the past 24 hours, Shiba Inu (SHIB) cryptocurrency has witnessed a significant drop in large transaction volume, raising questions about the potential reasons behind this phenomenon.
Volume and Price Decline
According to IntoTheBlock data, the volume of Shiba Inu large transactions, defined as those over $100,000, has dropped by 76.21% in the last 24 hours, amounting to just 1.9 trillion SHIB, or approximately $54.1 million in value. During the same period, Shiba Inu’s price has dropped by 2.05%, now trading at $0.00002744. Additionally, its trading volume has decreased by 9.05%, amounting to $854 million, per CoinMarketCap data. These changes might reflect cautious market sentiment aligning with profit-taking.
Consolidation and Market Sentiments
The crypto market rebounded in Wednesday's trading session, and SHIB wasn't left out. SHIB's price and volume drop might suggest the token is entering a consolidation phase following its recent price increase, which saw it reach highs of $0.0000334 on Dec. 8. A drop in large transactions amid the cool-off might occur as traders and investors hold off on significant moves.
Current SHIB Price Action
Shiba Inu's price rebound paused at the $0.000030 level on Dec. 12, signaling that bears are selling on rallies. The RSI has returned to the midway, indicating a balance of supply and demand. Shiba Inu may remain rangebound between the 50-day SMA of $0.0000244 and the overhead resistance of $0.00003344. Buyers will have an advantage if they push the price above $0.00003344. Shiba Inu might rise to $0.000039 and then to $0.000046. The advantage will shift in favor of the bears if the SHIB price falls below the 50-day SMA.
It will be interesting to see how the market changes following the U.S. Federal Reserve's Dec. 18 meeting. A rate decrease might improve confidence; however, if price declines persist, support is expected near the daily SMA 50 at $0.0000244.
