Shiba Inu (SHIB) has shown rapid price fluctuations recently, with sharp upward moves quickly followed by steep pullbacks, as whale activity signals a growing bearish outlook.
After initial strength supported by heavy trading volume, the token faced strong selling pressure that capped gains and pushed prices into consolidation below the $0.00001450 to $0.00001600 resistance zone. Traders are closely watching this range for signs of a breakout or further declines.
On-chain data reveals that whales are reducing their holdings significantly, with netflows dropping by over 300% and active SHIB addresses down nearly 70% since December, suggesting that major holders are pulling back from the market.
Price action shows SHIB trapped in a descending channel, making lower highs and lower lows, while struggling to surpass the 50-day moving average — a sign of weakening momentum.
With only about 17% of investors currently in profit and the majority still underwater, any attempt at a rally could trigger increased selling as holders look to cut losses.
Analysts remain divided: some spot potential bullish formations, but many warn that declining on-chain activity points to caution in the near term.
Key Technical Points:
- A strong volume-supported bounce occurred near $0.00001417, driving initial bullish sentiment.
- Volume surged over $700 million during early morning hours, highlighting increased buying interest.
- Late session saw a quick 1.77% retracement, indicating profit-taking after the rally.
- The formation of a bearish EMA stack indicates the price is struggling to regain upward momentum.
- A descending channel pattern on hourly charts points to short-term bearish trends.
- Heavy volume, exceeding 110 billion, accompanied a breakdown below key support levels, confirming selling pressure.
