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Shiba Inu (SHIB) faces a significant downturn after a brief rally, with over 80% of holders now in the red amid a harsh rejection below key resistance levels.
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The recent price action highlights a lack of sustained buying pressure, particularly from large holders, casting doubt on SHIB’s short-term recovery prospects.
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According to IntoTheBlock data cited by COINOTAG, nearly 790 trillion SHIB tokens are currently underwater, underscoring the widespread unrealized losses among investors.
Shiba Inu struggles after a sharp correction, with whale inactivity and technical resistance pushing most holders into losses, signaling potential further declines.
SHIB Brutally Rejected at Critical Resistance Levels
Shiba Inu’s price momentum was abruptly halted just below the 200-day moving average, a pivotal technical barrier around $0.0000145 that often dictates long-term trend direction. This rejection has left SHIB precariously positioned near the $0.0000133 support zone, where multiple moving averages converge, creating a delicate balance between potential rebound and further decline. The price chart reveals a clear inability to sustain gains beyond this resistance, reflecting a shift in market sentiment.
Moreover, the possibility of revisiting lower support levels such as $0.0000125 or even $0.0000110 cannot be discounted if the current support fails to hold. This scenario is compounded by a marked decrease in large transaction volumes, a key indicator of whale activity. The subdued presence of these significant holders following the recent price peak suggests a withdrawal of major buying interest, which historically has been critical in sustaining SHIB’s upward momentum.
Whale Inactivity and Its Implications on SHIB’s Price Dynamics
The recent lull in whale transactions points to a potential shift from accumulation to speculative trading driving SHIB’s price movements. This is further supported by technical indicators such as the Relative Strength Index (RSI), which has retreated from overbought levels, signaling diminishing buying pressure. Additionally, trading volume has plateaued, indicating a lack of fresh capital inflows necessary to fuel a sustained rally.
Such technical rejection combined with the fact that a vast majority of holders are currently at a loss creates a fragile market environment. The widespread unrealized losses may increase selling pressure as investors seek to cut their positions, heightening the risk of further downward movement. This dynamic underscores the importance of monitoring whale behavior and volume trends as leading indicators of SHIB’s near-term trajectory.
Market Sentiment and Potential Recovery Scenarios for SHIB
Despite the bearish signals, SHIB maintains a foothold above a significant demand cluster, which could serve as a foundation for a potential bounce if buying interest returns. Market participants should watch for renewed activity at these levels, as a shift in sentiment could catalyze a recovery. However, the sheer volume of underwater tokens—approximately 789.98 trillion SHIB—suggests that any rebound will face considerable resistance from holders seeking to exit losing positions.
In this context, SHIB’s current position reflects a reset to earlier price levels, erasing recent gains and dampening investor enthusiasm. The market is at a crossroads, evaluating whether the recent price action represents a failed breakout or the onset of a more prolonged downtrend. The fading euphoria and mounting losses among holders highlight the challenges ahead for SHIB’s price stabilization and growth.
Conclusion
Shiba Inu’s recent price correction and rejection at key resistance levels have placed the token in a vulnerable position, with most holders experiencing unrealized losses. The decline in whale activity and weakening technical indicators suggest limited short-term upside, while the large volume of underwater tokens may exert additional selling pressure. Although SHIB remains above critical support zones, recovery will require renewed buying interest and improved market sentiment. Investors should closely monitor whale behavior and volume trends to gauge SHIB’s potential path forward in an increasingly uncertain environment.
