Is the Shiba Inu’s bark losing its bite? Moving down nearly 30% from May’s highs, this meme coin may soon face a torrent of sell-offs triggered by whale wallets, should it gather enough momentum. Is it merely a corrective rally, or the beginning of a more profound downward move?
The bark of Shiba Inu has gone barely audible. Around the corner in May, this darling of meme coins strutted past $0.00001757, now it barely whimpers around $0.00001260, back to the lows of early May. Would this be a quick dip or a long winter for SHIB holders?
On-chain data reveals that whales have continued offloading their SHIB holdings this month a sign that larger investors expect more downside.
Whales are shrinking. According to Santiment, mega-holders (100 million to 1 billion tokens in possession) have shed a fair chunk of their holdings. These huge holders had around 19.5 trillion tokens under their power last year. Fast forward to 2023: with 17.96 trillion tokens in pockets, what an absolute breakdown! Rebalancing? Diversifying? Or something else?
The big SHIB whales, those swimming with 1 million to 100 million tokens, face pressure for unloading their stash. Such a big exodus has seen their stablecoin holdings fall to 52.4% of the total supply, down sharply from a 56% value earlier this month. Are they jumping ship, or are they just rebalancing their portfolios? The market is watching closely.
Investor bloodbath? New data reveals another wave of capitulation as battered investors unload assets at a loss. The crucial Network Realized Profit/Loss (NRPL) gauge has plunged to a chilling -1.04 million, with downtime days being painted into a black picture of sustained deep losses across the network.
Shiba Inu whale activity | Source: Santiment
Are the now-fading bonfires of the Shiba Inu being extinguished? The aforementioned wallets appear to be going away along with the ever-mildly-flickering burn rate. And sentiment cools down as the flames disappear.
The pulse of Shibarium is weakening. A once vibrant on-chain activity is now going extinct. Active accounts have fallen from a staggering 1,045 on June 6th to a sorry figure of barely 172 today. Transaction fees followed the march downward, from 1,459 BONE on June 4th to a mere 336 BONE on June 8th. Fewer transactions also mean fewer SHIB tokens burned, further dimming hopes for price appreciation. The flame that once illuminated Shibarium is now fading.
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Shiba Inu price technical analysis
SHIB price chart | Source: crypto.news
The daily chart shows that SHIB peaked at $0.00001757 on May 12 before plunging to $0.00001250.
Price action has formed a series of lower lows and lower highs, creating a descending channel pattern.
After breaking below major support floors, Shiba Inu went lower beneath the 50 and 100 DMA. Furthering the bearish momentum, the descent below the Murrey Math Lines’ pivotal reversal zone could be an indicator of a major shift in market sentiment.
“$0.00001043: The floor could fall out from underneath it. That’s where April’s low lurks, an icy 17.80% scrape down from today’s price. Bears hang above this descend channel, but hope remains. Will bulls crash through the $0.00001361 ceiling and the 50-day moving average, scaring the bears into the shadows?”
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