Shiba Inu Market Analysis

Key Observations

• Large Holder Selling Pressure: Shiba Inu’s (SHIB) large holders showed a significant decline, with a 70% reduction in inputs, indicating potential market abandonment.
• Price Movement: SHIB is trading within a descending triangle amidst a long-term downtrend, currently around $0.000012688, with critical support noted.

Market Dynamics

The decrease in large holder netflows corresponds with a 31% reduction in holdings by $1-$10 million SHIB wallet investors over a day. This withdrawal has diminished SHIB’s liquidity, resulting in a bearish price behavior below $0.000014. Without new whale activity, SHIB may struggle to regain support levels, increasing selling pressure.

Potential recovery hinges on new investors entering the market with minor trading volume increases, yet opinions remain mixed regarding market conditions.

Weekly Price Action

At press time, SHIB is navigating a descending triangle, with resistance from long-term downtrends and support at critical levels. Should this support hold, price rebounds towards $0.000030000 to $0.000045000 could occur. Falling below $0.000010000 indicates further bearish prospects with upcoming support levels at $0.000007000 to $0.000005000.

Bearish signals from the MACD trend suggest declining bullish momentum. An upward price shift may depend on a bullish crossover in the MACD.

Network Activity

The decline in whale activity is mirrored by a 6.86% drop in SHIB active addresses, with a 6.94% fall in new addresses. The high watermark of 1.4 million addresses has slipped to 1.38 million.

Despite a remarkable 49,552% increase in the daily burn rate, this surge has not significantly influenced price, underscoring that on-chain metrics don’t always correlate with market performance.