Bullish activity in the market has been easing due to external factors that have negatively impacted investor sentiment, especially Shiba Inu.
The crypto market in particular has taken a significant setback following the US Federal Reserve’s decision to raise interest rates and the resurgence of banking crisis concerns.
According to the latest data from CoinGeckothe market has contracted by almost 2% in the last 24 hours, indicating a clear downtrend.
Source: CoinMarketCap
SHIB, one of the leading meme coins in the space, is currently flashing red in all time frames. The latest market data shows that SHIB is down almost 5% in the current time frame, showing investors that it is a coin to avoid in the coming days. However, according to recent reports, crypto whales have been collecting SHIB reports.
Price down, whales piling up – what’s going on?
According to crypto whale tracker Whale statistics, the token is still the most traded token by whales. Recent news with regard to this recent activity, it appears that this accumulation may be part of a larger investment strategy. At the end of March, the same whales sold more than 500 billion SHIB before piling up again.
Whales also have most of SHIB’s supply. Up to 31% of SHIB’s total supply is controlled by 100 whales on the market. However, their accumulation was met with bearishness, with SHIB heading down.
Source: WhaleStats
The recent price movement of the token can be explained by the recent actions of the market. Major cryptocurrencies such as Bitcoin And Ethereum been bad the past few days. Despite Bitcoin faced a bullish break according to a Twitter analyst, SHIB’s current performance may be held back by developments outside of SHIB.
#Bitcoin Inexorable outbreak 💥🚀#BTC is about to break its monthly Bollinger Bands baseline 🔴. And when that happens, 1nd target 🎯 will follow inexorably. That would bring #Bitcoin to a solid $63,500. pic.twitter.com/jMojWaS3eL
— Titan of Crypto (@Washigorira) May 5, 2023
Despite this, investors should keep an eye on SHIB as it continues adult.
Shiba Inu investors should keep an eye on this level
Currently, the token is below the $0.0000096 resistance level. However, the price appears to be stabilizing below this level, which may indicate a bullish breakout. If the bulls manage to break through $0.00000096, investors and traders can comfortably target $0.00001098.
However, investors and trailers should follow how Bitcoin and Ethereum develop in the coming weeks. Any bearishness within these markets could negatively affect SHIB’s price movements going forward.
SHIB total market cap at $5.5 billion on the daily chart at TradingView.com
Monitoring the macroeconomic situation will also benefit the bulls. May 10th will be the next date that investors should pay attention to as this is the date when Consumer Price Index data will be released. If core CPI remains high or stagnant, we can expect the Federal Reserve to raise interest rates in the coming months.
In the short term, investors should be wary of short sellers temporarily taking over the market. CoinGlass data shows that long buyers far outnumber short sellers. Keeping these in mind should keep SHIB’s profitability in the green for investors.
– Featured image of IT Business
