The popular meme cryptocurrency Shiba Inu (SHIB) may be headed for a pullback, with two major indicators suggesting a rough road ahead. After a promising run earlier this year, SHIB’s latest price actions hint at mounting bearish pressures. Let’s break down the critical signals pointing toward a potential downturn.
Price Action Struggles At Key Moving Averages
The first red flag for SHIB is its price behavior, which recently fell below crucial technical support levels. After dropping 3.57% during yesterday’s trading session, SHIB has slipped below the 200-day moving average (MA) on its daily price chart—a pivotal line for investors that often acts as a gauge of long-term trends. Typically, when a cryptocurrency falls below this mark, it signals weakening momentum and the potential for further downside.
The trend appears even grimmer when zooming in on shorter timeframes. On the hourly chart, SHIB has failed to breach its 50-day MA for a prolonged 19-hour period, despite multiple attempts. This “dynamic resistance” level has become a significant roadblock, stopping any meaningful rally before it gains traction. Currently, SHIB trades at $0.00001856, and if sellers maintain control, the price could drop to as low as $0.00001776 or even $0.00001687, where these technical support lines lie.
Whales Are Exiting SHIB
Another factor casting shadows on SHIB’s outlook is the activity of large holders—colloquially known as “whales.” These major players, who control substantial portions of SHIB’s circulating supply, seem to be on a selling spree. Data from IntoTheBlock shows a concerning trend: wallets holding at least 0.1% of SHIB’s total supply experienced a net outflow of roughly 810 billion SHIB in the past 48 hours.
Also Read: Shiba Inu To $0.0001? Record 124.5M Burn Rate Adds Bullish Hopes For SHIB Price Surge
This sharp sell-off among whales signals a lack of confidence in SHIB’s near-term prospects. For these large holders, selling at strong resistance levels has become a safer play than waiting for an elusive breakout. The recent selling may also reflect broader concerns about the stability of meme-inspired assets amid turbulent market conditions.
What’s Next for SHIB?
With SHIB at a critical juncture, investors and traders should closely watch these support levels to gauge the coin’s direction. If the bearish signals persist, SHIB could see further declines, testing the patience of its community and testing long-term support levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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