Shiba Inu (SHIB), which rallied by more than 535% to a record high of $0.00008854 earlier this year, fell further on Nov. 24 as its appeal with retail traders waned.

SHIB’s price declined by nearly 60% after reaching its all-time high on Oct. 28, indicating that traders have been actively locking in their Shiba Inu profits. SHIB’s benchmark instrument of SHIB/USDT volumes on Binance has also seen a substantial drop, underscoring a weak retail interest.

In doing so, SHIB’s reported market capitalization slipped to $21.30 billion from around $28.31 billion in just five days beginning on Friday.

SHIB/USDT daily price chart. Source: TradingView

Google’s keyword search data also showed a declining interest in “Shiba Inu” markets, with its score on a 12-month timeframe dropping down from 100 to 20, aligning with SHIB’s 60% price correction.

Alex Krüger, an independent market analyst, referred to the dropping Google Trends for the keyword “Shiba Inu” as a sign that the token has been topping out — i.e., the beginning of its bear cycle.

Internet searches for the keyword “Shiba Inu.” Source: Google Trends

Could More sell-offs be Coming ?

The latest bout of selling in the SHIB market pushed its prices below a critical upward sloping support (the velvet trendline), triggering its potential to undergo further declines.

The Fibonacci retracement levels drawn from a swing low of $0.00000614 to a swing high of $0.00008933, as shown in the chart below, provided potential entry and exit points as SHIB’s price trended lower.

SHIB/USDT daily price chart featuring Fibonacci retracement levels. Source: TradingView

It appears SHIB’s latest price had it test the 0.618 Fib line at $0.00003792 as its interim support level. A rebound off the said price floor raised SHIB’s potential to retest the upward sloping trendline as resistance, which coincides with the 0.5 Fib line at $0.00004773.

Conversely, a move below $0.00003792 may risk sending SHIB’s price to the 0.786 Fib line at $0.00002394. Market analyst IncomeSharks also highlighted the area around $0.00002394 as a potential “buy zone” while referring to a weekly SHIB chart.

A bull flag setup for the SHIB price

Offsetting the sell-off fears in the SHIB market is the occurrence of a potential bull flag setup.

Related: Shiba Inu in danger of ‘topping signal’ as SHIB price loses 50% in 3 weeks

In detail, SHIB’s price has been trending lower inside a downward sloping channel since topping out at $0.00008854 on Oct. 28. The channel more or less appears like a bull flag, a bullish continuation indicator that appears as a consolidation phase following a strong move higher, as shown in the chart below.

SHIB/USDT daily price chart featuring bull flag setup. Source: TradingView

Typically, traders place their upside target at a length equal to the height of the previous uptrend (called a flagpole), anticipating that the instrument will break above the flag range with higher volumes. As a result, SHIB has the potential to rally by as high as $0.00005100, its flagpole’s height.

That puts the Shiba Inu token en route toward $0.00010000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.