Shiba Inu Drops 7.8% Amid Market Correction and Profit-Taking
The Shiba Inu (SHIB) token experienced a significant drop of 7.8% over the past 24 hours, amidst a broader market correction and profit-taking.
According to CoinMarketCap, the crypto market saw a 3.3% decline in its total capitalization, reaching $2.86 trillion from $2.96 trillion. This correction had a disproportionate impact on high-beta memecoins like SHIB, which are known to amplify market direction.
The analysis highlights that SHIB's drop was also influenced by exchange inflows and short-term sell pressure in the token itself. Approximately 534 billion SHIB were traded in 24 hours, with a net flow of around 191.1 billion SHIB into exchanges, increasing the available supply for sale.
A technical rejection after a strong Q3 rally is also seen as a contributing factor to the drop, with SHIB hitting a well-defined resistance region and being rejected at $0.00000625 before dropping to about $0.00000564.