In recent weeks, Shiba Inu has failed to become the hot discussion in the meme coin market, as the launch of Shibarium did not generate enough buying pressure to challenge put holders. As a result, the SHIB price has been stuck within a bearish consolidation range, building up selling pressure for a significant downturn in the coming days. However, whales are quite intelligent; they continue to make large transactions, hinting at a “buy the dip” moment for the SHIB price.
Whales Become Active As SHIB Declines
The price of Shiba Inu hasn’t been making headlines for its market performance, but what’s truly interesting is the sudden increase in whale activity. Data from IntoTheBlock reveals that the number of large transactions, commonly referred to as “whale” transactions, on the Shiba Inu network, has skyrocketed from a low 13 to a high 51. The high was 74 on 6 September, hinting at increased whale activity in the market.
This may indicate a phase of accumulation, as whales could be holding SHIB tokens, potentially in preparation for an upcoming price surge or another major event. Additionally, there’s a marked decline in the large holders’ inflow.
Data indicates that the inflow volume has plummeted from 4.81 trillion SHIB tokens to just 219.9 billion tokens on September 7, marking a decrease of over 95%. This points to a strong holding sentiment among whale investors, as fewer SHIB tokens are being deposited into exchanges. Such a trend could reduce selling pressure on the SHIB price, bringing the confidence of those holding long positions.
Furthermore, a reduction in large transactions can be a sign of a more stable and less volatile market environment. Whales, known for their market-moving transactions, often contribute to price volatility. A decline in significant inflows suggests that the SHIB may be less susceptible to price fluctuations.
What’s Next For SHIB Price?
Bears are currently intensifying their selling pressure near the EMA50 trend line as the SHIB price reversed its trend. Currently, sellers are attempting to send the price below the crucial support of $0.0000073; however, buyers are defending a decline strongly. As of writing, SHIB price trades at $0.00000754, declining over 0.8% from yesterday’s rate.
Nonetheless, resistance at the 20-day EMA is expected to be strong, as bears will likely put up a fight. If the price continues to drop, the bears might successfully push the SHIB price below $0.0000073. Achieving this could pave the way for a further slide to the next support level near $0.000006.
Conversely, a break above the 50-day EMA could indicate a weakening of selling pressure. This could set the stage for a rally toward the channel’s trend line and possibly even further to $0.0000087.