The SHIB whales are no longer interested
The enormous buying power that existed in the market at the beginning of the reversal rally is gone now, and the majority of Shiba Inu whales are no longer interested in supporting the rally. However, the inability or unwillingness of the whales to push the chip further could be related to the need for a temporary correction that would cool SHIB and the market in general.
Yesterday we saw a huge drop in the amount of Shiba Inu tokens burned on the network. Such a severe drop could be seen as an indicator of declining network activity which does SHIB no favors. Fortunately, the burn rate and overall activity of the Shiba Inu network is now recovering as the burn rate is now reaching values we usually see when the network is operating as usual.
From a technical perspective, SHIB was unable to break the extended downtrend and reversed at the three-month trend line. If the same market trend prevails, the meme token will return to the downtrend channel and lose all its gains since the beginning of the market reversal.
The Solana Pivot Point
In one of our previous analyses, we highlighted the importance of Solana’s local trendline support that investors use as a guideline for SOL bounces. Unfortunately, Solana has not been able to break out of the narrow trading channel and now needs investor support in order to continue its advance.
However, indicators such as the relative strength index, volume profiles, and volatility suggest that SOL will fall below the local trend line and enter a downtrend, although a return is possible in the future. According to analysts like Chris Burniske, a medium-term bear market is not what Solana investors are anticipating.
The Bizarre State of XRP
The last thing one would expect from XRP, which has not performed exceptionally well in the market, is the “overbought” signal flashing on the RSI, as the indicator suggests that the crypto-currency has very limited room to grow.
Since the beginning of a market-wide reversal, XRP has gained about 17% at its value, which is not the best performance in the market, or even in the top 10. However, investors have already stopped pumping the asset with funds, which could be the main reason behind XRP’s 3% reversal from the local high.
At press time, XRP is trading at $0.4 and consolidating around the 200-day moving average. It has not yet been able to break it. If the RSI signal is correct, we will most likely see an acceleration of the reversal in the coming days.