Shiba Inu (SHIB) continues its downward trend, reflecting a 3.22% decline over the past day. The meme coin faces resistance at the 50-day Exponential Moving Average (EMA), signaling potential for further correction as whales reduce holdings and profit supply dwindles to 23%.
Whale Activity Signals Waning Confidence
Data from Santiment reveals large investors are offloading SHIB:
- 10M–100M SHIB holders reduced holdings by 9B tokens (from 9.43T to 9.34T since January 1).
- 100M–1B SHIB holders shed 720B tokens (from 18.67T to 17.95T).
This sell-off coincides with a sharp drop in profit supply (from 75% to 23%), indicating mounting pressure on retail investors.
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Derivatives Market Reflects Bearish Sentiment
Shiba Inu’s derivatives landscape shows declining optimism:
- Open Interest (OI) fell 3% to $172M, signaling capital outflow.
- Long/short ratio dropped to 0.8871, with $331K in long liquidations vs. $15K shorts.
- Funding rates hold at 0.0084%, suggesting lingering bullish activity.
Technical Analysis: Bearish Momentum Builds
Key Support Levels
- Immediate support: $0.00001200 (tested June 5).
- Secondary support: $0.00001150 (March low).
- Critical floor: $0.00001029 (YTD low).
Indicators
- MACD: Flatlined signal line hints at short-term uncertainty.
- RSI: Dropped to 43, failing to breach the neutral zone, signaling room for further downside.
Upside Potential
A breakout above $0.00001421 (March 26 peak) could revive bullish momentum, targeting:
- $0.00001550 (February 22 high).
- $0.00001700 (February 12 peak).
FAQs
Q: Why are whales selling SHIB?
A: Declining confidence amid poor performance and reduced profit margins prompts whales to exit.
Q: What does the drop in Open Interest mean?
A: It reflects reduced speculative interest, often preceding price declines.
Q: Is SHIB oversold?
A: The RSI at 43 suggests more downside potential before reaching oversold conditions (<30).
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Conclusion
Shiba Inu’s bearish outlook stems from whale exits, dwindling derivatives interest, and weak technical indicators. Traders should monitor the $0.00001200 support closely. A breach could accelerate declines toward $0.00001029, while a reversal above $0.00001421 may signal recovery.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are volatile; conduct independent research before trading.
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