Shiba Inu Price Falls 10% Amid Record Selloff
Leading meme coin Shiba Inu has noticed a 10% price drop over the past 24 hours. The decline followed a surge in profit-taking by traders, who cashed out a staggering $426 million on Tuesday, the largest single-day sell-off since 2022.
SHIB’s price could extend its decline as profit-taking continues. That’s why.
Shiba Inu seller sells coins for profit
January 7, SHIB Network has realized profits and losses (Non-performing loans) totaled $426 million, the highest single-day value since February 2022.
A token’s NPL measures the difference between the last price an asset was moved or sold for and its current market price. It tells us how much profit or loss was “realized” by users on the network.
When an asset’s NPLs spike, it’s a sign that much of the cryptocurrency held by investors is being sold at a profit. This sudden influx of selling pressure can put downward pressure on asset prices, especially if the market is unable to absorb the increased supply.
farther, SHIB relative strength index (relative strength index) confirmed the surge in selling pressure. As of press time, it is below the 50 neutral line at 41.96 and is in a downtrend.
The RSI indicator measures oversold and overbought market conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and about to fall. On the other hand, values below 30 indicate that the asset is oversold and may be due for a rebound.
SHIB’s RSI reading is 41.96, indicating that selling pressure is increasing, which is a sign of market weakness. If the RSI continues to fall to 30, memecoin price Further declines are likely.
SHIB Price Forecast: More Falls to Come
On the daily chart, SHIB has been trading within a descending parallel channel for the past 30 days – a bearish pattern formed by two downward sloping parallel trend lines indicating continued lower highs and lower lows. This indicates continued selling pressure. If SHIB maintains this pattern, its price could drop to $0.000018.
However, this bearish outlook will become invalid if the selling abates and traders start accumulating meme coins. In that case, The price of SHIB may rise to $0.000025 and reached $0.000033.
Disclaimer
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