Shiba Inu’s Price on Shaky Ground as Whales Sell Off

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Amid the confusing market sentiment, Shiba Inu (SHIB), the popular meme coin is poised for a notable price decline as it has formed a bearish price action pattern on its daily chart. Shiba Inu (SHIB) could be facing a potential price drop due to a combination of technical pressures and a significant sell-off by major holders, known as “whales.” SHIB’s price has recently declined by 3.57%, dropping below the crucial 200-day moving average—a bearish indicator on the daily chart. On the hourly chart, SHIB has also struggled to break past the 50-day moving average, despite 19 consecutive attempts. 

Let’s dive into the breakdown that has shifted market sentiment toward a downtrend.

Whale Activity Signals Increased Selling Pressure

In the last 48 hours, large SHIB holders have sold off around 810 billion tokens, according to data from IntoTheBlock. This sudden exodus suggests that whales are exercising caution, choosing to sell near resistance points rather than risk potential losses. This selling trend has intensified concerns over SHIB’s price trajectory as market dynamics remain volatile.

Critical Support and Resistance Levels

Shiba Inu’s (SHIB) price, currently at $0.00001856, may see further declines if seller dominance continues. Key support levels have emerged at $0.00001776 and $0.00001687, marking crucial points for preventing a steeper drop. Immediate support is located at $0.00001815, with additional supports at $0.00001801 and $0.00001677. Holding above these levels is essential for SHIB to maintain upward momentum; a failure to do so could increase selling pressure and drive SHIB to lower lows.

On the resistance front, SHIB must break through $0.00001953 to target a rise toward the significant psychological level of $0.00002100. If it fails to hold at the $0.00001796 support, traders may look to downside levels at $0.00001714 and $0.00001565. These represent key targets and could indicate a deeper correction, potentially signaling more bearish sentiment and prompting traders to monitor for any signs of rebound or further declines at these support zones.

Will you buy the dip or wait for the market to recover? Tell us how you see this downtrend.