Shiba Inu’s price increase just disappeared, but asset still remains in uptrend
Since Aug. 16, Shiba Inu has kept around 30% of its value despite the previous 40% price increase we saw on Aug. 14. Essentially, the gain got zeroed, but this does not 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, Shiba Inu is still moving in an uptrend starting from June 26. Luckily, the 30% reversal returned the token directly on the local support level of the 50-day moving average, which is a threshold between the down and uptrend for the 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 caused rally and reversal?
Shiba Inu whales were the main providers of buying and selling power as the percentage of Shiba Inu retail holders was nowhere near the values we saw in the last year. Considering the high activity of whales back in winter, it is safe to say that a large portion of the token’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.