Shiba Inu is under significant selling pressure as over 4.87 trillion SHIB tokens were transferred in a single day, indicating bearish momentum and a possible price drop below key support levels.
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Massive token transfers signal increased selling activity among large holders.
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SHIB price has broken below the 50 EMA and is approaching critical support near $0.00001200.
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Technical indicators show no bullish divergence, suggesting the downtrend may continue.
Shiba Inu faces intense selling pressure with massive token transfers, risking a price drop below $0.00001200. Stay updated on SHIB market trends with COINOTAG.
What Is Causing Shiba Inu’s Recent Selling Pressure?
Shiba Inu’s selling pressure is driven by a spike in token transfers, with more than 4.87 trillion SHIB moved in one day. This surge corresponds with a break below the 50 EMA, pushing the price closer to critical support levels. Large holders appear to be offloading positions, signaling a shift in market sentiment.
How Does On-Chain Data Reflect Shiba Inu’s Market Sentiment?
On-chain data reveals that the seven-day average of SHIB transfers is 2.72 trillion tokens, highlighting aggressive trading activity. Historical trends show that such volume spikes often indicate distribution phases, where whales reduce holdings amid increased volatility. This behavior aligns with the current bearish momentum observed in the market.
SHIB/USDT Chart by TradingView
What Are the Key Technical Indicators for Shiba Inu’s Price Movement?
The SHIB price has decisively fallen below the 50 EMA and is heading toward the 200 EMA, a critical long-term support indicator. The absence of bullish divergence in the RSI, despite nearing oversold levels, suggests limited immediate recovery potential. If the $0.00001200 support breaks, SHIB could free-fall toward $0.00001050.
Why Is the Current Market Structure Considered Bearish?
The descending pattern forming on SHIB’s chart indicates a structural shift rather than short-term profit-taking. This bearish momentum is supported by large token transfers and a breakdown of short-term uptrends, signaling that speculative and fundamental pressures are weighing heavily on the asset.
Frequently Asked Questions
What does the spike in SHIB token transfers mean for investors?
The spike indicates increased selling activity, often by large holders or whales, which can lead to higher volatility and downward price pressure in the short term.
Is Shiba Inu likely to recover soon from the current downtrend?
Given the lack of bullish divergence in key technical indicators and the breakdown below moving averages, a near-term recovery appears unlikely without strong buying support.
Key Takeaways
- Massive SHIB transfers: Over 4.87 trillion tokens moved in a day, signaling strong selling pressure.
- Technical breakdown: Price fell below 50 EMA, approaching critical support at $0.00001200.
- Bearish momentum: Lack of bullish signals suggests potential continuation of the downtrend.
Conclusion
Shiba Inu is currently experiencing significant selling pressure driven by large token transfers and a breakdown of key technical levels. Without recovery above moving averages or renewed buying interest, the bearish trend is likely to persist. Investors should monitor on-chain data and technical indicators closely for signs of stabilization or reversal.
