Shiba Inu Price Plummets: Are Whales Signaling a Major Sell-Off?

Shiba Inu Price Plummets: Are Whales Signaling a Major Sell-Off?

The Shiba Inu (SHIB) cryptocurrency, known for its meme origins, is facing potential downward pressure. Two critical factors suggest a possible decline. First, the price action shows a clear negative trend, with SHIB falling 3.57% yesterday. More importantly, SHIB dropped below its crucial 200-day moving average on the daily chart, signaling increased bearish sentiment.

Price Action and Moving Averages Indicate Weakness

Examining technical indicators reveals further bearish momentum. SHIB has consistently struggled to break above the 50-day moving average on the hourly chart, which has become a crucial resistance level. For 19 consecutive hours, SHIB has failed to clear this dynamic resistance despite repeated attempts. Currently trading at $0.00001856, SHIB appears at risk of further losses if sellers continue to outweigh buyers.

SHIB 1-hour Price Chart Analysis. Source| TradingView

If bearish pressure persists, SHIB could drop to $0.00001776, aligning with the 200-day moving average on the hourly chart. A more significant decline could take it to $0.00001687, the 50-day moving average on the daily chart. These key levels will likely act as strong supports in the near term, although the overall trend remains uncertain.

Large Holders Signal Potential Market Exit

The behavior of SHIB’s largest holders indicates another reason for caution. According to on-chain data from IntoTheBlock, wallets holding at least 0.1% of SHIB’s circulating supply have shown a net outflow of approximately 810 billion SHIB in the past 48 hours. This considerable sell-off by so-called “whales” highlights weakening confidence among major holders.

SHIB Large Holders Netflow. Source| IntoTheBlock

The decision by these large investors to offload their holdings may stem from the current market’s unpredictability. Each time SHIB reaches a major resistance level, many large holders seem to view selling as a safer option. Rather than risk a potential breakout, they may prefer to watch and wait. This selling trend among large investors could further erode market support for SHIB, especially if it continues.

The Path Ahead for Shiba Inu

As SHIB navigates these challenging market dynamics, investors will likely monitor both technical signals and whale behavior closely. The token’s ability to break above key moving averages remains in doubt, while large holders’ exit strategies compound bearish pressure. Without a shift in these indicators, SHIB could face additional price declines in the days ahead.

Overall, SHIB’s near-term prospects hinge on renewed buyer interest, with the 200-day and 50-day moving averages serving as vital support levels. The sentiment among SHIB’s largest investors and prevailing market trends will play a significant role in determining the token’s future.

Read Also: SHIB Lead Claims Shiba Inu Outshines BTC with 33,774,726% Surge

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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