Shiba Inu’s Fall Intensifies with Whale Withdrawal
Shiba Inu (SHIB) continues to face significant downward pressure this week, with its value dropping to $0.00001275, marking its lowest level since May 9. This 28% decline from the May peak comes as demand weakens and investors flee this memecoin after a prolonged period of underperformance.
On-chain data shows that the realized profit/loss of the Shiba Inu network has remained negative for several months, a clear sign of bearish sentiment. This trend has coincided with the continuous selling by whales, whose holdings have decreased from 748 trillion tokens in January to just 718 trillion today. Simultaneously, the supply of SHIB on exchanges has increased, indicating heightened selling pressure.
Technical Analysis That Fails to Reassure
From a technical standpoint, the daily chart shows that SHIB has broken below the support of an ascending broadening wedge pattern, dropping below the 50 and 100-day exponential moving averages. This reinforces the current bearish bias. While the relative strength index is still above the oversold zone, further downside appears likely.
To reverse the trend, SHIB would need to reclaim the 200-day moving average at $0.00001570. Otherwise, sellers are likely targeting the next key support at $0.000010, the low from last April.
However, SHIB has not sustained above the strong liquidity zone and POC at $0.000013, confirming a definite lack of investor interest in recent days despite the 28% drop.
Unless there is a bullish reversal in Bitcoin in the coming days, SHIB is likely to see a new low in the demand zone between $0.00000098 and $0.0000088.
Investors should therefore exercise extreme caution with Shiba Inu in the weeks ahead. On-chain data and technical analysis reveal a concerning bearish outlook, with a high risk of continued price decline. Only a return above the 200-day moving average could reverse the current trend. Given this situation, it is probably best to refrain from trading or consider short positions on SHIB.
