Shiba Inu’s price increase just disappeared, but asset still remains in uptrend
Since August 16, the Shiba Inu has held about 30% of its value as on August 14, despite the previous 40% price increase. Essentially, the profit turned out to be zero, but that doesn’t mean that the token’s recovery is over.
Unfortunately for SHIB holders, the long awaited recovery did not appear on the market as the token’s value returned to the level we saw prior to the pump. The good thing about the reversal is the absence of a nosedive that could have happened with the help of a short squeeze.
Despite the reversal, the Shiba Inu is still moving in an uptrend since 26 June. Fortunately, the 30% reversal brought the coin straight to the local support level of the 50-day moving average, which is the boundary between a downtrend and an uptrend. Token.
In addition to the technical indicator, the asset’s movement is guided by the trendline support formed back in June. The trading volume suggests that the recovery rally is over, and the asset will most likely continue the trend we saw before the price spike.
Who did the rally and the reversal?
Shiba Inu whales were the main provider of buying and selling electricity because the percentage of Shiba Inu retail holders was nowhere near the prices we saw last year. Considering the high activity of whales over the winter, it is safe to say that a significant portion of the coin’s supply is controlled by major investors.
Unfortunately, it is not clear why someone chose to decelerate the rally despite supporting the price increase for not-the-most-liquid assets on the market that moved up without significant resistance in their path.
