Shiba Inu Records Historical Dump Following +350% Rally

After recording a sharp +350% rally under seven days in early October, Shiba Inu (SHIB) suffered a 41% drop amid the token’s largest dump in its trading history, Santiment reports. Following its Binance listing in May, SHIB recorded a 250% pump but later suffered a 50% drop in two days. However, the recent 40% decline occurred in a single-day candle.

According to on-chain data, small accounts holding between 1 – 10 million coins triggered the retrace. Reports show that this group of holders dumped over 30 billion SHIB directly into the market, which exerted immense selling pressure. Because of the number of over-leveraged positions in the market and the recent parabolic bull run, SHIB lacked solid support zones in the order books.

However, SHIB has recovered halfway from the recent retrace over the past 24 hours. The dumped 30 billion tokens got mopped up by ‘micro traders’ that set buy orders after witnessing the parabolic growth of the coin.

Nonetheless, SHIB remains a highly leveraged and volatile asset, with its volume on derivative products at high levels. Reports show that an immense amount of leveraged positions on SHIB trading pairs could have exacerbated the retrace.

Key Shiba Inu Levels to Watch — October 11

As mentioned earlier, Shiba Inu recorded a sharp drop from the $0.000035 barrier as traders took profits off the table. Subsequently, we saw a bullish charge towards the $0.000030 psychological level, followed by another rejection to the $0.000025 low on Saturday.

Today, SHIB has retested the $0.000030 resistance but failed to post a bullish continuation and could continue to struggle below this level in the coming hours.

However, the nineteenth-largest cryptocurrency trades up by 12.4% over the past 24 hours, indicating an immense bullish presence. That said, we expect to see a bullish continuation soon once bulls manage to clear the $0.000030 psychological barrier.

Meanwhile, our resistance levels are $0.00002500, $0.00002750, and $0.00003000, and our key support levels are $0.00002000, $0.00001700, and $0.00001500.

Total Market Capitalization: $2.32 trillion

Shiba Inu Market Capitalization: $11.3 billion

Shiba Inu Dominance: 0.48%

Market Rank: #19

 

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