- Shiba Inu’s price performance has been underwhelming, struggling to maintain its position above key support levels.
- Recent data indicates a significant decrease in large transactions, suggesting diminished activity from major holders.
- Experts warn of potential bearish trends if the asset fails to recover, with critical support levels being tested.
Shiba Inu’s Struggle: Will the Meme Coin Recover?
Shiba Inu Faces Strong Selling Pressure
Shiba Inu has recently capitulated to strong selling pressure, causing its price to drop below crucial support areas. The asset’s value declined to approximately $0.0000239, failing to hold above the $0.000025 level. This downturn coincided with a notable decrease in large transactions, indicating reduced activity by whales. The exodus of these significant holders suggests that the market sentiment for Shiba Inu remains bearish.
Whale Activity Diminishes
Recent data reveals a sharp decline in the number of high-value transactions involving Shiba Inu. From a seven-day high of 341 large transactions, only 82 were recorded over the past 24 hours. This significant drop in whale activity weakens the buying pressure necessary to sustain higher prices. The volume of large transactions in the last 24 hours amounted to 3.36 trillion SHIB, compared to the 5.7 trillion SHIB peak observed earlier in the week. This reduction in transaction volume further underscores the bearish sentiment surrounding the asset.
Market Sentiment and Holder Distribution
Adding to the concerns, only 61% of Shiba Inu holders remain profitable at the current price level, while 35% are experiencing losses. Despite the high concentration of holdings among large investors, the diminishing transaction volume indicates increased selling activity. This trend could potentially lead to further price declines if the bearish sentiment persists.
Technical Indicators Point to Bearish Trends
Technical analysis suggests that Shiba Inu may face additional downward pressure. A potential bearish cross of the 50-day and 100-day exponential moving averages (EMAs) could trigger further selling. If the asset breaks below these critical levels, it may test lower support zones around $0.000022 and possibly even $0.000018. Such a scenario would likely exacerbate the current bearish outlook for Shiba Inu.
Conclusion
In summary, Shiba Inu is currently grappling with significant selling pressure and reduced whale activity, leading to a bearish market sentiment. The asset’s failure to maintain key support levels and the potential bearish cross of crucial EMAs suggest that further price declines may be imminent. Investors should closely monitor these developments and consider the potential risks before making any investment decisions. The future outlook for Shiba Inu will largely depend on its ability to regain market confidence and attract renewed buying interest.
