Shiba Inu Price Prediction: Can SHIB Hold Its Rally Amid 4 Trillion Whale Transfer?

https://twitter.com/WormChester33/status/1857300780794966258

The SHIB price, which recently hit an intraday high of $0.00002668, dropped nearly 5% following the transaction, with market capitalization also slipping by 5.30% to $14.19 billion.

Such large movements in token supply can create a ripple effect, especially in assets like SHIB, where sentiment among smaller investors is sensitive to whale activity. Market observers suggest that this whale transfer may signal a cautious outlook, making traders wary of a potential pullback.

Federal Reserve’s Stance Adds to Market Caution

Adding to Shiba Inu’s volatility, recent comments from Federal Reserve Chairman Jerome Powell have affected the broader crypto market. Powell indicated that the U.S. economy does not yet warrant rate cuts, dampening hopes for a December reduction.

Following these remarks, the CME FedWatch tool reported a decrease in the probability of a rate cut from 83% to 62%, influencing riskier assets, including cryptocurrencies.

The announcement contributed to a broader crypto market downturn, with Bitcoin dropping 1.5% to $87,751 and Shiba Inu falling 2.5% to $0.00002469.

Low-interest environments generally favor digital assets as they boost liquidity and speculative buying. However, the Fed’s cautious approach may cause some investors to rethink high-risk positions, potentially restraining SHIB’s upward momentum.

🚨 #BREAKING 📰 4 Trillion SHIB Transfer Raises Concerns Over Shiba Inu's Bullish Runhttps://t.co/ziUh3MhaTP

— King 𝕏 Louie (@TheeKingLouie) November 15, 2024

Shiba Inu’s Technical Outlook: Key Support and Resistance Levels

Technically, Shiba Inu faces critical support at the 0.618 Fibonacci level of $0.00002329, close to a rising trendline that has upheld its recent rally.

This area also aligns with the 50-day EMA, positioned at $0.00002346, suggesting that a break below could intensify selling pressure.

Resistance lies at the 0.382 Fibonacci level ($0.00002602), followed by $0.00002773 and the recent high of $0.00003047.

The Relative Strength Index (RSI) at 44.49 reflects a weakening momentum, staying above the oversold threshold but indicating the bears are gaining strength. If SHIB maintains its hold above the 0.618 Fibonacci support, it may find a recovery path. However, a failure at this level could lead to deeper declines, with additional supports at $0.00002133 and $0.00002016 offering potential relief.

Key Insights:

• Whale Activity: A 4 trillion SHIB transfer ($99M) raised market concerns, leading to a 5% drop in SHIB price.

• Fed Influence: Powell’s comments on interest rates have weighed on high-risk assets, impacting SHIB’s momentum.

• Technical Levels: Key support at $0.00002329; a break could accelerate selling. Resistance stands at $0.00002602.

In the face of both whale activity and macroeconomic uncertainty, Shiba Inu’s near-term outlook remains cautious. Traders will be closely watching technical levels and market sentiment, as any additional downward movement could signal a broader trend shift for SHIB.