Shiba Inu Faces 70% Whale Withdrawal, Price Drops 14%

Shiba Inu (SHIB) is currently experiencing heightened selling pressure due to significant withdrawals by large holders, commonly referred to as whales, and a decline in active addresses on the network. This trend has raised concerns among investors about the future price trajectory of SHIB.

Recent data indicates that large holders have reduced their inputs by 70%, signaling a substantial retreat from the market. This decrease in whale activity has led to a reduction in liquidity, causing SHIB prices to remain below $0.000014. The lack of incoming capital from large wallet holders has dimmed the prospects for a price recovery, leaving the market in a precarious state.

Currently, SHIB is trading within a descending triangle pattern, which is typically associated with bearish trends. The price has tested support around $0.000012688 but is struggling to break through moving averages that act as resistance levels. If SHIB can maintain its position at this support level, it could potentially trigger a rally toward higher figures between $0.000030000 to $0.000045000. However, a break below $0.000010000 could open the door to even lower support targets around $0.000005000.

The MACD trend further supports the bearish outlook, with the signal line remaining below zero. The histograms indicate a loss of momentum for bullish moves. A bullish crossover in the MACD could provide the necessary push for SHIB to regain some lost ground, but this will heavily depend on renewed buying interest.

The decline in whale activity is mirrored by a decrease in SHIB active addresses, which fell by 6.86%. New address registrations have also dipped by 6.94%, suggesting a potential disinterest among retail investors. This slump in user engagement highlights the fragility of SHIB’s market dynamics. Following a peak of 15.6k active addresses in February, the numbers have since retracted, indicating a waning interest in the cryptocurrency.

Ask Aime: What are the technical indicators suggesting for Shiba Inu's price direction?

Despite a surge in the daily burn rate by an astounding 49,552%, this uptick has not translated into substantial price changes. This observation reinforces the notion that on-chain metrics do not necessarily correlate with price fluctuations, indicating a complex relationship between supply dynamics and market performance.

In summary, Shiba Inu faces critical challenges with decreasing whale activity and waning investor interest. The current trading pattern suggests a cautious approach for potential investors, as significant resistance exists at higher price levels. New entrants are essential for any upward movement. As the market continues to evolve, monitoring these trends will be crucial for understanding SHIB’s future price actions.