Shiba Inu Price Struggles Amid Market Volatility

The Shiba Inu (SHIB) price dropped 5% in the past 24 hours, trading at $0.000024 on Sunday, January 5. This underperformance contrasts with the broader crypto market, where rivals like Dogecoin (DOGE) and PEPE reached new peaks at $0.40 and $0.00020, respectively.

After hitting resistance at $0.000025 on January 3, SHIB is now hovering above $0.000023, a critical support level. Trading volumes have also declined, adding downside risks despite bullish momentum in the wider market.

Whales Buying the Dip

Recent on-chain data links SHIB’s price pullback to a three-day selling spree by whale investors who offloaded 466 billion SHIB tokens (worth approximately $11.7 million) between January 1 and January 3.

Such large sell-offs dilute the market supply and slow down price rallies, explaining SHIB’s rejection at $0.000025 while DOGE and PEPE advanced.

However, whale activity appears to be shifting. On January 4, whales acquired 67.5 billion SHIB tokens, marking the end of the selling spree. This renewed buying interest could signal an imminent rebound, with SHIB poised to retest the $0.000025 resistance in the coming days.

SHIB Price Outlook: Consolidation Before a Breakout

Shiba Inu is expected to remain in a consolidation phase below $0.000030 in the short term. While renewed whale interest is a positive signal, declining trading volumes may limit momentum needed for a breakout.

Key Indicators:

• Parabolic SAR: Positioned below the current price, suggesting buyer dominance and potential upside.
• Resistance Levels: SHIB must reclaim $0.00002450 and breach $0.00002500, aligning with the upper Bollinger Band, to target $0.000030.
• Support Levels: A failure to hold $0.00002200 could lead to a pullback toward $0.00001923, with further risks extending to $0.00001800, a critical lower support zone.

Shiba Inu’s price dip, coupled with renewed whale activity, indicates potential for a rebound. However, declining volumes and resistance at $0.000025 remain hurdles. If SHIB can sustain buyer momentum, it may rally toward $0.000030. Conversely, a breach of immediate support risks deeper consolidation in the near term.