Shiba Inu price rallies but hits resistance at $0.00002668, as a 4 trillion SHIB transfer stirs the market, raising concerns of a possible pullback.
Over the past day, the price of Shiba Inu (SHIB) has been rising steadily, hitting an intraday high of $0.00002668 before running into resistance.
However, some investors are now wondering if SHIB’s surge can continue or if a downturn is imminent given the Federal Reserve’s indication of a stable interest rate policy.
Is Price Rally For Shiba Inu In Danger?
The cryptocurrency community was sparked by a significant movement of 4 trillion SHIB tokens, or roughly $99 million, between two unidentified wallets.
Because they may indicate a desire to sell or change positions, large whale transactions can cause market turbulence.
Smaller investors often become anxious when whales shift large quantities of tokens because they worry that these transactions could lead to a sell-off.
According to market observers, investors may become more cautious due to the transfer’s timing, which coincides with the current spike in SHIB’s price.
Following this deal, SHIB’s stock fell by over 5%, and its market value fell by 5.30% to $14.19 billion.
Sentiment Is Impacted By Federal Reserve’s Cautious Stance On Rate Cuts
In a recent statement, Federal Reserve Chairman Jerome Powell said the Fed can “approach decisions carefully” because there are no urgent indications that the U.S. economy needs rate decreases.
The chance of a rate cut in December has decreased from 83% to 62%, according to CME FedWatch data, as a result of this news.
As investors considered the ramifications for digital assets, which frequently profit from low interest-rate settings, Powell’s comments caused a little decline in cryptocurrency markets.
After the lecture, Ethereum and SHIB saw comparable drops, with SHIB plunging 2.5% to $0.00002469, while Bitcoin fell 1.5% to $87,751.
The Fed’s cautious stance would deter some investors from purchasing high-risk assets, which could impede SHIB’s growth.
Technical Data Point To Mixed Future For SHIB
According to technical analysis, SHIB is encountering strong resistance at the $0.00002600 level.
In recent days, this price point has served as a barrier, and SHIB has found it difficult to keep up its progress above it.
SHIB’s support level on the downside is around $0.00002480, where the price has regularly recovered in previous sessions.
Generally regarded as a bullish indication, the 50-day Simple Moving Average (SMA) has formed a “Golden Cross” by rising above the 200-day SMA.
The current surge may be due for a correction, though, as the Relative Strength Index (RSI), which is at 66.59, shows that SHIB is getting close to overbought circumstances.
A balanced market attitude devoid of a pronounced directional bias is indicated by the Money Flow Index (MFI), which is currently showing mild purchasing pressure at 47.32.
Trading volume for SHIB has dropped by more than 50% during this price decline, indicating a decline in interest or activity in SHIB derivatives, which may indicate waning momentum.
Furthermore, there has been an almost 3% drop in open interest in SHIB contracts, suggesting that traders may be closing positions rather than taking on new ones.
Despite this, Lucie, the marketing lead for Shiba Inu, has stated her belief in the token’s potential and forecasted a potential surge to $0.00006.
At the same time, a Shiba Inu price forecast suggests that if this bullish trend continues, a climb towards $0.0001 might be imminent.
