Shiba Inu (SHIB) Price Drop: Whale Sell-Off Fuels Concerns

Shiba Inu (SHIB) Price Drop: Whale Sell-Off Fuels Concerns

The meme coin Shiba Inu (SHIB) experienced a 10% price drop in the past week, trading at $0.0000125 at the time of writing. This decline correlates with a substantial decrease in whale holdings, suggesting waning confidence among large investors.

Whale Sell-Off Accelerates

Data from IntoTheBlock reveals a 123% decrease in SHIB's large holder netflow over the past week. Large holders, defined as addresses owning over 0.1% of the circulating supply, are actively offloading their assets. This negative netflow signifies increased selling pressure, potentially driving further price declines.

SHIB Large Holders Netflow. Source: IntoTheBlock

Technical Indicators Point to Bearish Sentiment

SHIB's Relative Strength Index (RSI) on the daily chart currently sits at 35.34, suggesting weakening buying pressure and approaching oversold territory. While not yet fully oversold, the RSI indicates the potential for further price drops unless buying pressure increases.

SHIB RSI. Source: TradingView

Descending Trend Line Adds to Concerns

Since December 8th, SHIB has consistently traded below a descending trend line, a bearish pattern that indicates sustained selling pressure. If this trend continues, SHIB could fall to a seven-month low of $0.0000107. However, increased buying pressure could push the price towards $0.0000166.

SHIB Price Analysis. Source: TradingView

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile. Conduct thorough research and consult with a professional before making any investment decisions.

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