The cryptocurrency market remains under pressure, and Shiba Inu (SHIB), one of the most popular meme coins, is feeling the heat. Over the past week, SHIB has shed nearly 10% of its value, trading at around $0.0000125 as of this writing. This downtrend has been exacerbated by significant whale sell-offs, raising concerns about the coin’s market confidence and future price trajectory.
Whale Confidence in SHIB Declines Amid Market Weakness
A key driver of SHIB’s price struggles is the notable decline in whale holdings. Data from IntoTheBlock reveals that SHIB’s large holders’ netflow has dropped by a staggering 123% in the past week. This coincides with the meme coin’s 8% price dip, suggesting that major investors are offloading their holdings at an accelerated pace.
Understanding Large Holders’ Netflow
Large holders, or whales, are wallets that hold more than 0.1% of SHIB’s circulating supply. The netflow metric tracks whether these investors are accumulating (positive netflow) or distributing (negative netflow) their tokens. The recent sharp decline in netflow suggests that whales are exiting their positions, increasing the circulating supply of SHIB and putting additional downward pressure on its price.
Moreover, this trend can significantly impact retail investors. When large holders sell off their assets, it can trigger panic among smaller traders, leading to more selling pressure and exacerbating SHIB’s downward momentum. If the current trend continues, SHIB may struggle to find strong support in the near term.
SHIB’s Technical Indicators Signal More Downside
Technical analysis also points to potential further losses for SHIB. The Relative Strength Index (RSI), a momentum indicator used to assess whether an asset is overbought or oversold, is trending downward at 35.34. Typically, an RSI reading above 70 suggests that an asset is overbought and may be due for a correction, while a reading below 30 indicates an oversold condition and a possible rebound.
At 35.34, SHIB’s RSI suggests that while it is approaching oversold territory, it has not yet fully entered it. This indicates that buying pressure remains weak, leaving room for further declines unless demand for SHIB increases.
Descending Trend Line Continues to Weigh on SHIB Price
Another concerning technical pattern is the descending trend line SHIB has been trading below since December 8. This trend line forms when an asset consistently makes lower highs over time, reflecting sustained selling pressure and a bearish market structure.
For SHIB to break out of this bearish trend, it must reclaim and hold above key resistance levels. Until then, downward pressure will likely persist, keeping SHIB in a precarious position.
Potential Price Levels to Watch
Given current market conditions, analysts have identified key price levels that SHIB traders should monitor:
- Support Level: If selling pressure continues, SHIB could fall to a seven-month low of $0.0000107. This level may serve as a crucial support zone where buyers could step in.
- Resistance Level: On the flip side, if buying momentum picks up, SHIB could climb to $0.0000166, which represents a significant resistance level that must be broken for a bullish reversal to occur.
Market Sentiment and Future Outlook
Despite recent struggles, SHIB continues to maintain strong community support. The meme coin sector remains highly speculative, with rapid price fluctuations driven by market sentiment, whale activity, and broader crypto trends.
However, the declining whale holdings and weakening technical indicators raise concerns about SHIB’s short-term outlook. For a potential turnaround, SHIB must see renewed buying pressure and a break above its descending trend line.
As the market navigates uncertainty, traders should closely monitor whale movements and technical signals to gauge SHIB’s next move. Whether SHIB can recover or continue its descent remains a question, but for now, the meme coin faces a challenging road ahead.
