Cryptocurrency markets’ ongoing correction trend has notably affected leading meme tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe Coin (PEPE), and BONK. Experts suggest a steep correction may be expected as the recent rally left this class of tokens in an overbought zone.
Resistance Levels in SHIB
The popular meme token Shiba Inu’s price drop could indicate a decline below the $61.8 Fibonacci retracement level, signaling the threat of further losses. Shiba Inu, the second-largest meme cryptocurrency, has been under a correction trend for the past three weeks, with its price dropping by 43% from $0.000045 to $0.0000259. On the daily chart, this retracement can be tracked using a downward trend line that serves as dynamic resistance for buyers. The overall supply has already pushed the SHIB price below the 50% retracement level, which could be a sign reflecting weakening bullish momentum.
Long-Term Outlook for SHIB
In contrast, long-term investors who have held their tokens for over a year have reduced their holdings by 9.07%. This exit from the long-term holders could create higher selling pressure for SHIB and the potential for breaking another support level. Therefore, if sellers surpass the 61.8% FIB base at $0.00002376, the SHIB price could drop to $0.00001812 by the end of March. However, if the Shiba Inu price breaks the general trend line, a renewed recovery potential could emerge.
