The meme coin sector remains under bearish pressure as Bitcoin experiences a significant decline, threatening to drop below the $40,000 level. In this situation, the price of Shiba Inu (SHIB) is caught in a downward consolidation trend, facing a low open interest. Despite positive factors like encouraging SHIB burn statistics and continuous network improvements, there’s a notable reluctance among major investors, known as ‘whales’, to gather more of the meme coin. This hesitancy, along with the current low market volatility, is complicating efforts to move SHIB out of the fear zone.
Shiba Inu’s Whale Interest Continues To Drop
Shiba Inu is flashing notable bullish developments within its network as recent on-chain analysis indicates a possible route for the meme coin to achieve the much anticipated $0.00001 valuation. This analysis is based on the distribution of SHIB liquidity at certain price points, as highlighted by insights from IntoTheBlock.
Present data shows an impressive accumulation of approximately 39 trillion SHIB tokens around the $0.000009 value, distributed over 87K addresses. Notably, these holdings are currently at a break-even point for their owners, indicating a vital support level within the Shiba Inu investor community.
Nevertheless, a hurdle presents itself in the form of a massive concentration of 47 trillion Shiba Inu tokens, located at a marginally higher price point, exactly $0.00001 per SHIB. This accumulation is currently having a negative impact, as it results in losses for its 100K holders. In order for SHIB to successfully rise above the desired $0.00001 mark, it needs to tackle this significant volume, which poses a risk of a sudden exit.
Additionally, there’s a noticeable decline in whale interest towards SHIB’s price, as indicated by the drop in the number of large transactions over the past week. This metric, which peaked at 81 transactions, has experienced a significant decrease, currently standing at just 10 transactions.
What’s Next For SHIB Price?
Shiba Inu has remained below its 20-day Exponential Moving Average (EMA), priced at $0.00000935, over recent days. However, despite this, the bears haven’t been successful in driving the price down due to increased buying pressure near the dip. As of writing, SHIB price trades at $0.00000897, declining over 2.7% from yesterday’s rate.
The declining 20-day EMA along with the Relative Strength Index (RSI) heading toward the oversold region suggests that sellers currently hold the upper hand. If Shiba Inu’s price fails to rise from its current level or falls below accumulation phase at $0.0000082, the bears may once again attempt to send the SHIB price toward $0.0000076.
On the other hand, a break above the 20-day EMA would indicate a weakening of bearish control. In this scenario, buyers might seize the opportunity to drive the price towards the descending resistance line at $0.0000097. A breakout might consolidate the price within the resistance zone of $0.000011-$0.000012.