Shiba Inu Market Shake-Up: Whale Dump Roils Price, but Recovery Signs Emerge

Shiba Inu (SHIB) has experienced a significant price drop in the past week, attributed to a whale selling a large number of coins. However, technical indicators suggest a potential recovery, with the price bouncing back from a support level and Bollinger bands indicating a widening trend. Meanwhile, Solana's newest meme coin, Slothana (SLOTH), has emerged, raising $7 million in a presale and rapidly growing its community.

Shiba Inu Price Volatility: Market Correction and Whale Liquidation

Shiba Inu (SHIB), the second-largest meme cryptocurrency by market capitalization, has experienced significant price fluctuations in recent days. According to its 7-day chart, SHIB has witnessed an over 10% price dip, with signs of recovery emerging today.

The price of SHIB remained relatively stable for most of the past week, with a notable drop in the early hours of Monday, April 1. The decline commenced from around $0.000030 to a support level of $0.000026.

While this price correction coincides with an industry-wide pullback, it is noteworthy that a specific event may have played a role in SHIB's downturn. On March 31, reports surfaced that a whale sold over 533 billion SHIB coins in exchange for 15.99 million DAI at approximately $0.00003.

The transaction, executed through 11 different wallets, netted the whale a profit of $8.24 million in less than a month. Following the sale, the SHIB price began a sharp correction, plunging by over 10%.

Technical Indicators Suggest Price Recovery

Despite the recent decline, traders have observed technical indicators that indicate a potential price recovery for SHIB. Bollinger bands, a technical analysis tool, show a widening of the price channel after a period of tightening earlier in the week. This pattern has been observed historically after price drops, where traders buy low and drive the price higher.

Furthermore, the Relative Strength Index (RSI) for SHIB has been in the oversold or neutral zone since the weekend. Currently, it is showing signs of improvement, suggesting increased trading activity.

Resistance Level and Recovery Potential

To initiate a sustained recovery, SHIB needs to breach the resistance level at $0.000028. This level initially acted as a support during Monday's price fall but could now pose a barrier to further upward movement.

If SHIB successfully breaks above this level, it could gain momentum and potentially return to its previous highs. However, a failure to overcome this resistance could lead to a further decline in price.

Slothana: Solana's New Meme Coin

Amidst the price volatility of SHIB, a new meme coin has emerged on the Solana network: Slothana (SLOTH). Launched last week, Slothana has experienced rapid growth, raising approximately $7 million in under a week.

The presale offered 10,000 SLOTH tokens per 1 SOL, setting the initial coin price at $0.019. Despite limited information about its plans and goals, Slothana has gained a substantial following, with over 9.5k followers on X in less than a week.

Slothana joins the growing roster of meme coins on Solana, further strengthening this sector of the cryptocurrency industry. Notably, it differentiates itself from dog-based meme coins, which has contributed to its initial success.

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