Shiba Inu Massive Reversal Signal Around Corner: Crypto Market Review, December 1

Arman Shirinyan

The Meme token still has a long way to go to face the reversal, but this signal could help it


  • SHIB could soon turn bullish
  • Ethereum about to break through

The market is finally recovering after weeks of depressing performance and many assets reach tipping points where a long-term reversal becomes a possibility. Unfortunately, there is still a long way to go to cover the losses suffered by the industry after the FTX implosion and prolonged bear market.

SHIB could soon turn bullish

According to the four-hour chart, two moving averages could form a popular “golden cross,” which is often considered one of the strongest bullish indicators in general. Unfortunately, the crossover on the sub-24 hour timeframes is not as valuable as the same signal on the daily chart.

Shiba Inu Painting
Source: TradingView

Either way, the cross will be the first sign of an upcoming reversal for Shiba Inu, which has been trading in a strong downtrend for nearly 200 days. The most likely reason for the negative performance is the distribution of funds across the network.

During the crazy bull run that SHIB had in 2021, the percentage of retail investors who held the asset just to sell it for a modest profit reached nearly 80%, which is a critical number for any kind of business. ‘asset.

As soon as the price of the token reversed, most retail traders fueled the downtrend by selling their holdings as soon as possible regardless of the losses they were facing. The token’s profitability fell from nearly 100% to a critical level of 30%, which made it extremely unattractive to retail investors.

Until 2022, whales were the only group of traders who actively bought the token without looking at its price performance. But even with the backing of a big buyer, another rally for SHIB was impossible without the help of many traders.

The only scenario in which a reversal would be a possibility for Shiba Inu would be if the general cryptocurrency market recovers and upward volatility returns for the token, which could again attract some retail investors.

Given that the majority of Shiba Inu owners are whales rather than retail traders, selling pressure shouldn’t be an issue amid the potential acceleration of the rally. According to data from IntoTheBlock, over 54% of SHIB owners are long-term holders and only 7% had exposure to the token less than a month ago.

Ethereum about to break through

As we mentioned in our previous market reviewEthereum has reached an important resistance level, which will act as a barrier between the $1100-$1300 price range and higher prices.

In the event of a successful breakout, Ethereum has every chance of immediately rallying to the next major resistance level. The 200-day moving average not only acts as technical resistance, but also correlates to a price level that Ether was unable to conquer last time.

At press time, Ethereum is trading at the $1,288 price level and has been battling against the 50-day moving average for the past 48 hours.

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