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Shiba Inu (SHIB) has recently climbed to $0.00002668, drawing attention from investors. However, massive whale transactions and the Federal Reserve’s cautious interest rate stance have raised concerns about the coin’s ongoing rally. While technical indicators point to a potential pullback, experts believe SHIB’s long-term potential remains intact.
Massive Whale Transactions Spark Speculation
In the past 24 hours, SHIB surged to an intraday high of $0.00002668 before facing resistance. At the same time, a massive transaction of 4 trillion SHIB tokens, worth $99 million, between two anonymous wallets stirred speculation within the crypto community. Large-scale whale activity like this often signals market shifts, potentially leading to significant sales or portfolio adjustments.
Following the transaction, SHIB’s price dropped by 5%, and its market cap fell by 5.3% to $14.19 billion. This decline has fueled speculation about a short-term correction, with many smaller investors expressing concern over the uncertainty created by whale movements.
Fed’s Policy and Its Impact on SHIB
The Federal Reserve’s latest statements have further complicated SHIB’s rally. Fed Chair Jerome Powell emphasized that current economic conditions do not warrant an interest rate cut. His comments diminished expectations for a December rate cut, reducing its probability from 83% to 62%, according to CME FedWatch data.
The cautious tone of the Fed has negatively impacted risky assets like cryptocurrencies. Bitcoin dropped by 1.5% to $87,751 following Powell’s remarks, while SHIB fell by 2.5%, trading at $0.00002469. With investors pulling back from riskier markets, SHIB’s upward momentum faces additional challenges.
Technical Indicators Signal Mixed Prospects
From a technical perspective, SHIB faces resistance at $0.00002600, with key support at $0.00002480. The 50-day Simple Moving Average (SMA) crossing above the 200-day SMA has formed a “Golden Cross,” a bullish signal. However, the Relative Strength Index (RSI) at 66.59 indicates overbought conditions, suggesting a potential correction. Meanwhile, the Money Flow Index (MFI) at 47.32 points to a more balanced market sentiment.
SHIB’s trading volume has dropped by over 50%, reflecting reduced interest in derivative markets. Open interest in SHIB contracts has declined by 3%, indicating that traders are closing positions rather than opening new ones.
Future Scenarios and Potential Growth
Lucie, SHIB’s marketing lead, expressed confidence in the token’s potential, predicting a price increase to $0.00006. Some analysts believe SHIB could eventually rally to $0.0001, driven by strategic developments and growing market interest.
While Shiba Inu’s rally faces challenges from whale activity and macroeconomic factors, its long-term outlook remains tied to strategic progress and market sentiment. As Turkish NY Radio highlights, navigating these dynamics requires a careful balance of risk and opportunity.
