As Shiba Inu's price teeters near critical support levels, analysts speculate on its potential trajectory by month's end amidst ongoing correction trends in the volatile cryptocurrency market.

The Impact of Correction Trends on Meme Cryptocurrencies

The ongoing correction trend in the cryptocurrency market has significantly impacted meme cryptocurrencies, as evidenced by notable drops in top assets such as Dogecoin, Shiba Inu, Pepe Coin, and BONK. The last rally left this asset class in an overbought region, so a steep correction appears to be in store.

The price drop of Shiba Inu, a dog-themed memecoin, is teasing a breakdown below the $61.8 Fibonacci retracement level, indicating the possibility of further decline, Coingape reported.

Shiba Inu, the second-largest meme cryptocurrency, has been experiencing a correction trend for the past three weeks, with the price falling from $0.000045 to $0.0000259, a 43% loss.

“In the daily chart, this retracement can be followed using a downsloping trendline which acts as a dynamic resistance for buyers. The overhead supply has already plunged the SHIB price below the 50% retracement level- a sign reflecting the weakening bullish momentum.”

Shiba Inu Investor Behavior: Contrasting Trends Among Short-Term and Long-Term Holders

According to recent data from IntoTheBlock, Shiba Inu ($SHIB) investors have behaved very differently over the last 30 days. Short-term holders, defined as those who hold SHIB for less than a month, have increased their stakes by 64 trillion SHIB, a 278% increase. This spike indicates increased speculative interest among newcomers or short-term traders looking for quick gains.

“In the past 30 days, short-term Shiba Inu owners have increased their holdings by a staggering 64 trillion $SHIB. According to insights from @intotheblock utilizing the Balance by Time Held metric, Shiba Inu traders with holdings spanning less than a month have seen a remarkable surge, marking a 278% increase in the last 30 days. Meanwhile, long-term holders, those with investments exceeding a year, have experienced a reduction in their balances, witnessing a decline of 9.07% over the same period,” IntoTheBlock content creator Slim Daddy wrote on X.

Long-term investors, who have held for over a year, have reduced their holdings by 9.07%. This exit from the long holder increases selling pressure on SHIB and raises the prospect of another support breakdown.

Thus, if sellers break the immediate floor of 61.8% FIB at $0.00002376, the SHIB price could drop to $0.00001812 by the end of March. A new recovery may begin if the Shiba Inu price breaks the overhead trendline.

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