Shiba Inu Plummets 92%: Exploring the Factors Behind the Dramatic Cryptocurrency Decline
Emily HarrisShiba Inu lost major portion of its inflows, and dynamic is certainly turning negative[...]
Shiba Inu Faces Dwindling Whale Interest as On-Chain Activity Plummets
Bearish Signals Mount as SHIB Struggles to Break Key Resistance Levels
Shiba Inu (SHIB) finds itself in a precarious position as the once-popular meme token faces declining price momentum and reduced on-chain activity. The most concerning development is a staggering 92% weekly drop in large holder inflows, signaling waning interest from major investors.
Currently trading near $0.00001316, SHIB continues to struggle against critical resistance levels marked by the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $0.00001392, $0.00001417, and $0.00001553 respectively. This technical weakness highlights the market's inability to sustain meaningful rallies, reinforcing bearish sentiment.
On-Chain Data Paints a Bleak Picture
On-chain analytics from IntoTheBlock reveal a dramatic 92.35% weekly decline in large holder inflows, with a 30-day drop exceeding 56%. This suggests whales are either staying on the sidelines or exiting positions entirely.
The lack of participation from major holders presents significant short-term challenges for SHIB. Without renewed whale interest, the market lacks the liquidity and conviction needed for upward price movement. Shrinking trading volume and stagnant prices further confirm this trend.
Bearish Outlook Prevails Unless Sentiment Shifts Dramatically
Technically, SHIB remains in a downtrend, having stayed below the 200-day moving average since mid-April. Repeated breakout attempts have met with selling pressure, revealing market weakness and lack of bullish follow-through.
Unless significant positive catalysts emerge - whether through news, broader market recovery, or a technical breakout above the 200 EMA - SHIB's path appears downward. The $0.00001200 support level now stands as the last major defense against further declines.
With bearish price structure, rejected resistance levels, and collapsing whale activity, SHIB's outlook remains challenging. The token may continue its downward drift until either whale interest returns or bulls successfully reclaim key moving averages.
