Shiba Inu Faces Deeper Price Decline as Whales Continue Massive Sell-Offs

Shiba Inu, a leading meme cryptocurrency, has experienced a nearly 10% reduction in value within the past week, currently trading at $0.0000125.

This downturn aligns with a noticeable decrease in holdings among whale investors, indicating diminishing confidence among significant players in the wake of broader market instability.

Market Confidence Deteriorates Amid Whale Activity

Recent data from IntoTheBlock reveals a staggering 123% drop in netflow among large SHIB holders over the last week. This decline occurred alongside an 8% dip in the cryptocurrency’s price.

Whales, defined as wallets holding over 0.1% of the total circulating supply, are crucial to market dynamics. Their netflow data—indicating the movement of tokens in and out of their wallets—offers insights into whether they are hoarding (positive netflow) or liquidating (negative netflow) their assets.

The current negative netflow suggests that significant sell-offs by these whales are increasing the supply on the market, thereby exerting additional downward pressure on SHIB’s price.

This sell-off trend among whales might also erode the confidence of retail investors, leading them to divest their holdings in anticipation of continuing losses, potentially exacerbating SHIB's price decrease.

Additionally, the daily chart shows SHIB’s Relative Strength Index (RSI) indicating bearish momentum, currently at 35.34, pointing towards an ongoing downtrend.

SHIB Struggles Below Key Resistance Level

The cryptocurrency has remained below a descending trend line since December 8, which has characterized its price trajectory as continuously declining. This pattern reflects a bearish trend, with successive price peaks demonstrating persistent selling pressure among market participants.

If this trend persists, SHIB is at risk of dropping to a seven-month low of $0.0000107.

However, if buying interest surges, SHIB's value could rebound to approximately $0.0000166.

Market Outlook and Investor Sentiment

With the RSI nearing oversold conditions but not yet fully crossed into that territory, the current situation reflects weakened buying pressure. A revival in demand for SHIB could be essential in reversing the negative trend.