Published: December 22, 2024 at 6:02 pm
Updated on December 22, 2024 at 6:02 pm
Shiba Inu (SHIB) has been on quite the rollercoaster ride recently. After reaching some impressive new highs, it faced a steep decline, which was pretty much in line with the broader crypto market’s risk-off sentiment. After a four-day drop, SHIB managed to bounce back from lows around $0.0000185, pushing up to around $0.000024. But, as you might expect, that level just didn’t hold.
Now, most crypto assets are taking a hit, especially after Bitcoin’s recent dip following its flirtation with the $100,000 mark. That Bitcoin drop saw a whopping $336 million liquidated from crypto positions, with most of that being bullish bets. So, it’s hard to be optimistic right now.
When it comes to the impact of the Federal Reserve’s interest rate policies, it’s a mixed bag. On one hand, when the Fed cuts rates, it can kickstart economic activity. Cheaper borrowing for banks tends to flow down to their customers, which can increase liquidity. More liquidity means more demand for riskier assets, including cryptocurrencies. It’s a chain reaction that usually drives prices up.
On the flip side, if the Fed raises rates, it makes safer assets more appealing. So, people start pulling their money from riskier assets like crypto. That’s pretty much what happened with Bitcoin’s recent rate cut, which led to a 5.7% drop in its value. The Fed’s comments didn’t help either.
On-chain data from IntoTheBlock gives us some insight into key support levels for SHIB. The next major support is reportedly between $0.000019 and $0.00002, where 20.51 trillion SHIB is held by 19,330 addresses. If this support level holds, it could stabilize the price.
Interestingly, there’s been an 81% drop in large transaction volume for SHIB in the last 24 hours, which suggests that whales might be holding back, waiting for some clarity before making any significant moves. It’s worth noting that this change in large transaction volume is often tied to whale activity, given their market influence.
In the broader market, Bitcoin’s influence is undeniable. Its performance often dictates the mood for altcoins. When Bitcoin moves significantly, others usually follow. Its recent decline after nearing the $100,000 mark definitely affected the entire crypto market, including SHIB.
Looking ahead, the future outlook for Shiba Inu is uncertain, shaped by factors like Fed policies, support levels, whale activity, and overall market trends. As the crypto market matures, it might become less influenced by Fed changes. Increased institutional adoption and clearer regulations could lead to more stability.
Institutional investors are expected to bring more disciplined trading strategies, which could enhance liquidity and reduce volatility. The concentration of SHIB tokens at certain price levels could also provide some support. But, it’s hard to ignore the overall market conditions and investor sentiment that will continue to play a role.
Related Topics
Access the full functionality of CryptoRobotics by downloading the trading app. This app allows you to manage and adjust your best directly from your smartphone or tablet.