Whale sell-off intensifies as Shiba Inu faces mounting pressure
Shiba Inu (SHIB), the popular memecoin, is grappling with increasing selling pressure as its largest holders—commonly referred to as whales—continue offloading their tokens. Despite a recent surge in the burn rate, which typically reduces circulating supply and is seen as a bullish catalyst, the token has failed to sustain any meaningful price rebound. The exodus of whales and widespread bearish sentiment have limited SHIB’s potential for recovery.
Over the past week, on-chain data has revealed a significant decline in the amount of SHIB held by large investors. This steady distribution suggests that whales are losing confidence in the memecoin’s short-term prospects. The price of SHIB has already breached the lower boundary of an eight-month consolidation range, which now acts as a resistance level. Attempts by bulls to push above this zone have repeatedly failed.
In particular, the token’s behavior since early October highlights a notable shift in investor sentiment. Following the broader market correction during that period, high-value transactions involving SHIB spiked—especially around the 10th, 19th, and 26th of October. These sudden increases in dormant circulation, where previously inactive tokens began moving, are often interpreted as signs of selling activity by long-term holders.
The supply held by whales has been trending downward since early September. This persistent decline aligns with a broader bearish outlook, not just for SHIB, but across the memecoin sector. Dogecoin (DOGE), another major player in the space, is also showing signs of weakness, threatening to break below key support levels. If DOGE continues to slide, SHIB could follow suit due to correlated investor behavior in the memecoin ecosystem.
Technically, SHIB is currently trading within a narrow short-term range between $0.0000093 and $0.0000113. The midpoint at $0.0000103 has acted as a firm resistance level, repeatedly rejecting price advances. Momentum indicators reflect this bearish environment—on the 4-hour chart, the MACD remains in negative territory, suggesting downward pressure continues to dominate.
However, there is a glimmer of optimism. The On-Balance Volume (OBV) indicator has been forming higher lows over the past three weeks, indicating that despite price declines, some accumulation may be occurring. This divergence between price action and volume could hint at a potential reversal if supported by broader market improvements or a shift in whale behavior.
Still, the overall outlook remains cautious. The repeated failure to break above resistance, combined with ongoing whale distribution, paints a challenging picture for SHIB in the near term. Unless fundamental or market-wide catalysts emerge, a bearish breakdown from the current range remains a real possibility.
Adding to the uncertainty is the fluctuation in SHIB’s burn rate. Although the weekly burn rate increased by 139% compared to the previous week, the past 24 hours saw a notable decline. This inconsistency raises questions about whether the burn mechanism alone is enough to counteract the prevailing sell pressure.
Market sentiment across cryptocurrencies is also playing a role. With Bitcoin and Ethereum experiencing their own volatility, altcoins like SHIB are particularly vulnerable. Investors may be reallocating capital into more stable assets or exiting riskier positions altogether, contributing to the downward trend.
Looking ahead, the key levels to watch include resistance at $0.0000103 and support at $0.0000093. A break below the lower boundary of this range could accelerate losses, especially if accompanied by further whale exits. Conversely, a successful retest and breakout above $0.0000103 might provide temporary relief, although it would require strong volume and positive sentiment to sustain.
For retail investors, the current landscape calls for cautious monitoring. While SHIB remains a popular token with a robust community, the technical and on-chain signals suggest that the path of least resistance is currently downward. Monitoring whale behavior, burn rate trends, and broader market movements will be crucial in determining SHIB’s next direction.
In summary, Shiba Inu is navigating a turbulent phase marked by large-scale token dumping from whales and heightened market uncertainty. While certain metrics offer hope, the prevailing trend remains bearish, and any bullish reversal would require a significant shift in both sentiment and on-chain dynamics.