Top Shiba Inu wallets are ramping up sell transactions, exerting significant downward pressure on the market. On-chain data shows a worrying surge in these liquidations as SHIB struggles to hold its support levels. Could this trend trigger a deeper correction or is it just profit-taking post a recent rally?
Blockchain analytics reveal a notable decrease in token concentration within top holders’ wallets. Over the past two weeks, addresses holding more than 1 billion Shiba have significantly reduced their positions, transferring substantial volumes to exchanges. While this distribution might appear positive for decentralization, the timing and speed of these movements raise questions about the true motivations behind these moves.
The net flows to exchanges have increased exponentially, creating direct selling pressure on order books. Market makers are struggling to absorb these volumes without affecting price, resulting in successive breakdowns of support levels. The bid-ask ratio has also widened, indicating fragile liquidity and growing hesitation among buyers to enter at current price points.
The correlation with Bitcoin remains strong, yet SHIB is significantly underperforming the broader altcoin market. This relative weakness suggests token-specific factors, particularly this massive distribution by whales creating a selling overhang that the market struggles to absorb. Technical traders are closely monitoring the psychological support level, which, if broken, could trigger a cascade of stop-losses and amplify the downward movement.
The current setup places investors in a classic dilemma: Hold in hopes of a rebound or secure positions before a potential bearish breakout. Momentum indicators like the RSI remain in neutral territory, providing no clear directional signal in the short term. However, the MACD shows a concerning bearish divergence, suggesting a progressive weakening of buying pressure.
Spot trading volumes remain moderate, indicating a lack of commitment from both sides of the market. This apathy may precede either a violent move once direction is confirmed or a continuation of the current range. Positions in the derivatives market show relative balance between longs and shorts, with a funding rate near zero, reflecting widespread indecision among leveraged traders.
From a fundamental perspective, the Shiba Inu ecosystem continues to develop with Shibarium and related projects, but these advances are currently struggling to counterbalance the selling pressure from whales. The market’s reaction to upcoming team announcements will be crucial in judging the project’s ability to maintain investor interest despite these technical headwinds. Patience and risk management remain essential in this environment of increased uncertainty.
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