Shiba Inu (SHIB) Price Outlook and Waning Whale Interest: What Lies Ahead?

Bullish Outlook: Shiba Inu (SHIB) Coin Could See Substantial Gains, Expert Believes

Shiba Inu (SHIB) price momentum faced a setback this week as attempts to breach the $0.000009 resistance level proved challenging. On-chain analysis now focuses on critical data points that could influence SHIB’s price action in the days ahead.

The recent market trend for SHIB has transitioned into a consolidation phase characterised by a diminishing bullish momentum. The pressing question in the market is whether the second-largest memecoin, based on market capitalisation, will undergo a breakdown and potential rebound from this juncture.

Shiba Inu Crypto Whales Reduce Trading Activity

SHIB price experienced double-digit gains as the Bitcoin (BTC) market rally extended to meme coin markets in late October. On-chain data reveals that whale trading activity has waned since Shiba Inu’s rejection at $0.000008 on October 24.

According to IntoTheBlock, Shiba Inu whales conducted a two-month high of 69 Large Transactions on October 24. However, as of November 2, this number has gradually decreased to 39 whale transactions, marking a 44% decline.

The daily transactions metric aggregates the number of trades exceeding $100,000 in value daily. A significant drop in whale transactions is considered a bearish signal, signifying decreased interest among large institutional investors. This shift may also influence retail traders to adopt a more pessimistic stance. If this trend persists, the SHIB token might face reduced market demand.

Current Sell Orders Exceed Market Demand

The Aggregate Order Books provide a crucial on-chain indicator pointing to diminishing demand in SHIB spot markets. SHIB traders have actively listed sell orders for 6.5 trillion tokens, notably above the 6 trillion SHIB buy orders available across ten crypto exchanges.

The Aggregate Order Books of Exchanges offer a snapshot of all active market orders for an asset. In the context of lower demand, many sellers may need to lower their prices to compete effectively.

Consequently, reduced whale trading activity and weakened market demand could trigger a downward price movement for SHIB in the coming days.

SHIB Price Forecast: Possible Decline to $0.000005?

Based on current on-chain data, Shiba Inu’s price may be poised for a further decline towards $0.000006 in the upcoming days.

The Global In/Out of the Money (GIOM) chart, which illustrates the entry price distribution of existing SHIB holders, reinforces this bearish outlook. It suggests that Shiba Inu losing critical support at $0.00007 could trigger more significant losses.

As shown below, 52,9200 addresses acquired 19.37 trillion SHIB at a maximum price of $0.000007. Since this constitutes the most substantial support cluster below current prices, these holders will likely make concerted efforts to “HODL” their positions. However, if whale demand continues to decrease, Shiba Inu’s price might decline further towards $0.000005.

Conversely, the bearish prediction could be invalidated if Shiba Inu’s price reclaims $0.00001. But at present, this seems unlikely, given that 153,700 addresses hold 68.5 trillion SHIB purchased at an average price of $0.000008. If they decide to take profits early, SHIB’s price may experience a retracement.

Should that resistance level be breached, Shiba Inu’s price could potentially rally toward the $0.00001 range.

Read Also: Shiba Inu Failure To Delete a Zero After 180 Days 

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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