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Recent developments in the Shiba Inu (SHIB) market indicate a concerning trend as whale selling pressure mounts, significantly impacting prices.
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Despite a temporary rally, SHIB faces strong resistance, and the current trading patterns unveil a precarious situation for investors.
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“SHIB’s large holders lost momentum with a 70% fall in their inputs,” warns COINOTAG, highlighting the alarming trend of whale withdrawals.
This article explores the current challenges facing Shiba Inu (SHIB) amid declining whale activity and trading patterns, assessing long-term price implications.
SHIB’s Whale Activity Signals Increased Selling Pressure
The recent trend in Shiba Inu’s market activity highlights a troubling decrease in whale participation. The large holder netflows have plummeted, dropping by 70% within a week, suggesting that prominent investors are retreating from the market. The implications are stark — the liquidity of SHIB is diminishing, causing prices to remain anchored below $0.000014. Without incoming capital from large wallet holders, the prospects for price recovery seem bleak.
Current Trading Patterns and Potential Price Movement
At the moment, SHIB is trading within a descending triangle configuration, a pattern typically linked to bearish trends. The price tested support around $0.000012688 but is struggling to break through moving averages that act as resistance levels. If SHIB can hold its ground at this support level, it previously experienced strong demand, which might trigger a rally toward higher figures between $0.000030000 to $0.000045000. Breaking below $0.000010000 could open the door to even lower support targets around $0.000005000.
Source: TradingView
Moreover, the MACD trend corroborates the bearish outlook, with the signal line remaining below zero. Histograms indicate a loss of momentum for bullish moves. A bullish crossover in the MACD could provide the push necessary for SHIB to regain some lost ground, but this will rely heavily on renewed buying interest.
Declining Network Activity and Its Implications
The decrease in whale activity is mirrored by a decline in SHIB active addresses, which fell by 6.86%. New address registrations have also dipped by 6.94%. This slump underscores a potential disinterest among retail investors, which can adversely affect market dynamics. Following a peak of 15.6k active addresses in February, numbers have since retracted, highlighting the fragility of SHIB’s user engagement.
Source: IntoTheBlock
Despite a surge in the daily burn rate by an astounding 49,552%, this uptick has not translated into substantial price changes. This observation reinforces the notion that on-chain metrics do not necessarily correlate with price fluctuations, indicating a complex relationship between supply dynamics and market performance.
Conclusion
In summary, Shiba Inu faces critical challenges with decreasing whale activity and waning investor interest. The current trading pattern suggests a cautious approach for potential investors, as significant resistance exists at higher price levels. New entrants are essential for any upward movement. As the market continues to evolve, monitoring these trends will be crucial for understanding SHIB’s future price actions.
