Shiba Inu (SHIB) prices fell by nearly 25% on January 3rd, dragged down by a broader crypto market selloff that also saw Bitcoin shed over 10% of its value. However, SHIB has since bounced back somewhat, hinting at optimism among long-term holders.
According to tradingview, SHIB is currently trading near the 78.6% Fibonacci retracement level after hitting a local low of $0.00000827 on January 3rd.
While SHIB saw a quick recovery to $0.0000101 the next day, candlestick patterns indicate the potential for a retest of the $0.00000827 support level before any sustained upside.
On the positive side, on-chain data from Santiment reveals that the supply of SHIB on exchanges has been steadily decreasing over the past month. This indicates increased accumulation and hodling activity.
Additionally, the mean coin age for SHIB reversed its prior downtrend in December, signaling longer-term holders may be looking to buy the dip.
However, a sharp spike in SHIB’s age consumed metric on January 3rd points to significant token movement potentially driven by a wave of selling. More distribution could be on the horizon before SHIB can mount a recovery.