Shiba Inu (SHIB), the prominent meme coin, experienced a 10% price decline within 24 hours amid a massive profit-taking event. Traders offloaded $426 million worth of SHIB on January 7, marking the largest single-day selloff since 2022.
This selloff highlights shifting market sentiment and raises questions about SHIB’s near-term trajectory. Below, we analyze key metrics driving the downturn and potential price movements.
Shiba Inu Sellers Capitalize on Profits
Network Realized Profit/Loss (NPL) Hits $426 Million
SHIB’s NPL—a metric tracking profit/loss realized by holders—reached $426 million on January 7, the highest since February 2022.
What NPL Reveals:
- Measures the difference between an asset’s last moved/sold price and its current market value.
- A sharp upward spike signals widespread profit-taking, often leading to increased selling pressure.
👉 Why NPL matters for crypto investors
RSI Confirms Growing Selling Pressure
SHIB’s Relative Strength Index (RSI) fell below the neutral 50-line to 41.96, reflecting weakening momentum.
RSI Interpretation:
- Values above 70: Overbought (potential correction).
- Values below 30: Oversold (potential rebound).
- Current reading suggests sustained selling, with further declines possible if RSI approaches 30.
SHIB Price Prediction: Bearish Channel Signals Downside Risk
Descending Parallel Channel Points to Lower Lows
SHIB has traded within a descending channel for 30 days—a bearish pattern indicating consistent lower highs and lows.
Key Levels:
- Support: $0.000018 (channel lower boundary).
- Resistance: $0.000025 (channel upper boundary).
Potential Reversal Scenarios
- Continued Selloffs: Price may drop to $0.000018 if bearish momentum persists.
- Accumulation Phase: A shift in trader sentiment could propel SHIB toward $0.000025 and beyond.
👉 How to spot trend reversals in crypto
FAQ: Shiba Inu Selloff Explained
1. Why did SHIB’s price drop suddenly?
The decline followed a $426 million profit-taking event, the largest since 2022, as traders cashed out gains.
2. What does SHIB’s RSI indicate?
An RSI of 41.96 signals growing selling pressure. A drop below 30 could indicate an oversold bounce.
3. Where might SHIB’s price head next?
If the descending channel holds, SHIB could test $0.000018. A breakout above the channel may target $0.000025.
Disclaimer: This analysis adheres to the Trust Project guidelines for transparency. It is not financial advice. Conduct independent research and consult professionals before investing. Market conditions may change rapidly.
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- **Keywords**: Shiba Inu, SHIB price, meme coin selloff, Network Realized Profit/Loss, RSI indicator, crypto profit-taking.