Shiba Inu Faces Significant Price Drop Amid Whale Selling
The Shiba Inu cryptocurrency has witnessed a substantial price decline, largely attributed to massive sell-offs by significant holders, often referred to as “whales.” This downturn has been mirrored across the broader cryptocurrency market, erasing recent gains and challenging critical support levels. The exodus of these major investors not only accelerates the token’s downturn but also triggers anxiety among retail traders, potentially leading to further declines.
The Role of Whales in the Shiba Inu Price Drop
According to data from blockchain analytics firm IntoTheBlock, whale wallets have been rapidly offloading SHIB tokens. The Large Holder Netflow, a metric that tracks the net change in whale holdings, has dramatically decreased by 736.46% over the past week and 125.06% over the past month. This stark drop indicates a significant increase in selling activity, as whales are sending out more SHIB than they are acquiring, thus exerting substantial selling pressure on the market.
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Further analysis reveals that addresses holding SHIB tokens valued between $1 million and $10 million have seen a 31.31% reduction in their balances in just the last 24 hours. Similarly, those with holdings exceeding $10 million have experienced a 27.99% decrease. These figures underscore the scale of the sell-off and its impact on the market.
Implications for Shiba Inu’s Market Performance
The market’s response to this wave of whale selling has been swift, with social sentiment around Shiba Inu turning decidedly negative. The Shiba Inu Fear & Greed Index has dipped into the “Fear” category, registering around 33 out of 100, as investors grow increasingly uneasy about the sustained downward trend.
Historically, when whales engage in large-scale selling, it tends to lead to a decline in SHIB’s price. In early February, an abrupt shift from a 3.5 trillion SHIB inflow to a 792.8 billion SHIB outflow within a day caused the price to hit a low of $0.00001286. Presently, Shiba Inu’s value has fallen below this level, dropping by approximately 11% as major holders continue to sell. Currently, Shiba Inu is trading at around $0.0000125 per token, marking its lowest point in over a year. If whale selling persists, the downtrend could deepen.
Technical indicators reflect a cautious market outlook, with SHIB’s daily Relative Strength Index (RSI) hovering in the mid-30s. This suggests the token is nearing oversold conditions, yet the bears continue to dominate the market.
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