Shiba Inu Drops 6% Amid Whale Moves, but Technical Setup Points to Possible Reversal
Shiba Inu (SHIB) extended its recent slide, falling 6% over a 24-hour period through early Friday, driven by macro headwinds and rising signs of token distribution by large holders. The memecoin dropped from $0.000013 to as low as $0.000012, marking its lowest level since July 9.
The pullback followed a surge in SHIB balances on centralized exchanges, which rose to 84.9 trillion tokens as of July 28. That jump suggests potential distribution by whales, even as net accumulation remained positive at 4.66 trillion SHIB — worth approximately $63.7 million — over the same period, according to CoinDesk’s market analytics.
Despite the bearish price action, the SHIB burn rate saw a significant spike, jumping more than 16,700% with over 602 million tokens destroyed, reflecting ongoing efforts to reduce supply.
Technical Signals at a Glance:
- Resistance at $0.000013 triggered a sharp selloff on high volume.
- Support was found near $0.000012, backed by strong buying interest totaling 1.19 trillion tokens.
- A breakout trading volume of 90.5 billion tokens supported a bounce back to $0.00001235 late in the session.
Candle Pattern Suggests Reversal Potential
While the broader trend remains downward, July’s monthly close printed an “inverted hammer” — a candlestick pattern often interpreted as a precursor to a bullish reversal. The formation, featuring a long upper wick and a small real body, suggests initial strength by buyers before sellers regained control. When it occurs after a decline, it can mark a turning point if followed by confirmation.
Still, traders should remain cautious. A drop below the July low of $0.00001108 would invalidate the reversal setup and likely open the door to further downside.
