Shiba Inu Drops 65% From November High Amid Market Turmoil

Shiba Inu (SHIB) has experienced a significant decline, reaching a crucial support level this week. The token was trading at $0.0000115 on Saturday, marking a 35% decrease from its highest level in May and a 65% drop from its November high. This downturn mirrors the broader altcoin market, which has seen its market capitalization fall from $947 billion in November to $583 billion today, excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins.

SHIB has faced several internal challenges, including a deteriorating Shibarium ecosystem, increased whale selling, and competition from other meme coins like Fartcoin and Dogwifhat. DeFi Llama data indicates that Shibarium’s total value locked has decreased by 20% over the last 30 days, to $2.58 million. Most decentralized applications (dApps) in the ecosystem, such as ShibaSwap, WoofSwap, and ChewySwap, have also shed assets in the past 30 days. Its total value locked is much smaller than many newer chains.

Despite these challenges, there are indications that SHIB's price may rebound soon. After months of selling, there are signs that whales have started buying the token. Santiment data shows that holders with between 1 million and 10 million tokens have increased their positions to 2.03 trillion from last month’s low of 2 trillion. Additionally, Shiba Inu has become relatively cheap, with an MVRV figure of less than 1, suggesting that it is undervalued as the market price is lower than its realized value.

The daily chart shows that the SHIB price bottomed at $0.00000997 on Monday and then bounced back to $0.00001135. Its lowest point this week was the lowest swing in April this year. It has formed a double-bottom pattern whose neckline is at $0.00001755. A double bottom is a highly bullish sign in technical analysis. The Relative Strength Index has also moved from the oversold level of 28 to 40. The token is likely to bounce back and possibly hit the neckline at $0.00001755, representing a 55% increase from the current level. However, a drop below the key support level of $0.0000099 would invalidate the bullish outlook and suggest further downside risk.

Whales have been particularly active, accumulating 10 trillion SHIB tokens. This large-scale accumulation by major holders is a strong indicator of confidence in the token's future prospects. The descending triangle pattern observed in the price chart further supports the bullish outlook, as it suggests a potential upward movement in the price. The combination of these factors has led to a sense of optimism among traders and investors, who are closely monitoring the market for any signs of a breakout.

The current market conditions for Shiba Inu are characterized by a mix of technical indicators and whale activity, both of which point towards a potential price breakout. The descending wedge pattern, double bottom formation, and descending triangle pattern all suggest a bullish outlook. Additionally, the MVRV crash indicates that the token may be undervalued, presenting a buying opportunity for investors. The accumulation of 10 trillion SHIB tokens by whales further supports this optimistic view, as it demonstrates confidence in the token's future performance. As the market continues to evolve, traders and investors will be closely monitoring these developments to capitalize on any potential price movements.