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With a significant 13% decline in the last day, Shiba Inu seems to have lost its recent vigor. A strong rally that gave investors hope for long-term gains preceded this correction. Nonetheless, the current state of affairs indicates that market players — whales in particular — are becoming less willing to support SHIB at its high levels. 

A sudden drop in buying pressure is reflected in the price's sharp decline, as large holders probably took profits following SHIB's notable upward movement. The apparent drop in trading volume demonstrates this behavior and raises the possibility that the fervor that drove the rally is waning. A bearish descending triangle, which frequently portends more declines, is also where SHIB is currently consolidating. 

Since the larger cryptocurrency markets are finding it difficult to sustain their bullish momentum, market sentiment regarding SHIB appears to be changing. Since altcoins like SHIB often mimic the actions of the market leader, investors' apprehension has been heightened by Bitcoin's recent decline. SHIB must first stabilize above its closest support level at $0.00002300 in order to regain its bullish momentum. 

The price may drop further if this level is not maintained, with $0.00002050 serving as the next crucial support. SHIB needs a strong push above $0.00002700, which is presently a significant resistance level in order to resume its upward trend. In the short term, large holders, or whales, are probably going to continue to exercise caution and hold off on reentering the market until more favorable conditions have been established.

These major players' recent sell-offs demonstrate their doubts about SHIB's capacity to maintain its rally. But if SHIB finds support at critical levels and the mood of the market improves, generally whales might reinvest, giving the sector another boost.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.