The cryptocurrency market is experiencing turbulence in the early days of Thursday, with major assets, including Shiba Inu (SHIB), continuing to face downward pressure. SHIB’s price has struggled to maintain momentum after a recent surge, causing many investors to reconsider their positions as price movements slow.

Recent Performance of Shiba Inu

After a sharp rally in the past week, Shiba Inu’s price peaked at $0.0000167 on May 10, but it quickly encountered resistance around this level. The cryptocurrency market has been in a consolidation phase, marked by a cooling of investor sentiment. SHIB’s price began to drop shortly after reaching its weekly highs, resulting in a decline to the $0.000015 range as of press time, with a 5.92% loss in the last 24 hours. However, the weekly performance remains positive, with a gain of approximately 11%.

This correction comes as the broader crypto market faces pressure, and Bitcoin and Ethereum experience resistance after reaching key price levels. The market is witnessing a broader decline in assets, with $361 million liquidated in the last 24 hours, according to CoinGlass data. Of this, $290 million came from long positions, highlighting the challenges for bullish traders across the market.

Focus on Key Support: 103 Trillion SHIB

Amidst the price correction, attention is now focused on a critical support level where a significant concentration of Shiba Inu tokens has been held. According to on-chain data from IntoTheBlock provided by Sentora, 103.58 trillion SHIB are located within a support range between $0.00008 and $0.000014. These tokens were purchased by 362,050 addresses at an average cost basis of $0.000011.

The large number of SHIB holders positioned at this key level creates a strong support zone that could play a crucial role in determining the price direction of Shiba Inu in the near term. If the price retraces further and approaches this level, there is a strong chance that the bulls will step in to defend this support, potentially leading to a price rebound.

As the market has demonstrated in the past, price action often follows the movements of key support and resistance levels. If this support zone holds, it could act as a catalyst for SHIB to recover from its recent decline and continue its upward trajectory.

Broader Market Sentiment and Profit-Taking Activity

The larger cryptocurrency market has been experiencing a cooling period following a significant rally, and Shiba Inu is not immune to this trend. Bitcoin and Ethereum, two of the largest cryptocurrencies by market capitalization, have faced resistance after hitting key price levels. As a result, there has been a general decline across the market, with traders taking profits after the recent surge.

The Crypto Fear & Greed Index, which tracks investor sentiment, rose to 73 on Wednesday, indicating overheated conditions in the market. The index has since moderated to 70, reflecting the ongoing profit-taking activity and a shift in market sentiment. This cooling effect has trickled down to smaller altcoins, including Shiba Inu, contributing to the price slowdown observed in the past few days.

Shiba Inu’s Price Action and Potential Scenarios

The price action of Shiba Inu remains somewhat cautious, and it appears that the market is testing key support levels. As SHIB retraced from the recent highs, the focus has shifted to the 103 trillion SHIB held within the aforementioned support zone. If SHIB fails to defend this support, it could experience further downside movement, testing lower levels.

On the other hand, if bulls manage to defend the support and stabilize the price above the $0.000015 level, Shiba Inu could recover and make another attempt at breaking through the resistance levels. Given the concentration of tokens at these key support levels, a strong rebound is possible, especially if market sentiment improves or if other assets in the broader market show signs of recovery.

Conclusion

Shiba Inu’s price has slowed down after a strong rally, but the cryptocurrency remains under close watch as it trades near a significant support level. With 103 trillion SHIB in focus, the upcoming days could determine whether the bulls can defend this crucial support zone or if the price will face further downside. Traders and investors alike will need to monitor the broader market sentiment and the performance of Shiba Inu’s key support levels in the coming days to gauge the likelihood of a rebound or continued consolidation.