Shiba Inu ($SHIB ), a leading meme cryptocurrency, is witnessing unsettling developments on its blockchain. Fresh data from IntoTheBlock reveals that large-scale holders, or "whales," have liquidated a staggering 7.48 trillion SHIB within the past 24 hours. This marks a significant surge—an eye-opening 712% increase—from the previous day’s outflow of 1.05 trillion SHIB.
Analyzing On-Chain Metrics
Massive Whale Sell-Offs
The bulk of these sales stems from addresses holding at least 0.1% of SHIB's circulating supply. Such large-scale sell-offs raise concerns about the token's market stability.
Heightened Whale Inflows
Interestingly, whale wallets also experienced increased inflows, with 7.41 trillion SHIB added—a notable 89.5% rise compared to the day before.
Sharp Netflow Decline
Despite rising inflows, SHIB’s netflow turned negative, plummeting from 2.86 trillion SHIB to a concerning -72.77 billion SHIB. This shift reflects a growing bearish sentiment among major holders.
Price Action Insights
Over the last 24 hours, SHIB’s value fell by 8.24%, stabilizing near $0.000023 after hitting intraday lows. This wave of selling likely stems from concerns over continued price declines, as the token flirts with a critical support zone.
SHIB’s recent upward momentum, which had delivered an impressive 80% gain since November, failed to sustain its trajectory. The formation of a "double top" pattern—a bearish technical indicator—further dampens confidence among traders.
Market Sentiment and Future Outlook
The sharp rise in whale sell-offs signals a potential shift in market sentiment. These major holders appear to be liquidating positions amid fears of additional price corrections. Coupled with SHIB’s failure to break through resistance levels and the appearance of bearish chart patterns, the broader mood among investors has turned cautious.
Key Takeaways
Heightened Whale Activity: The surge in whale-driven sales points to mounting selling pressure.
Volatility Risks: SHIB’s inability to overcome key resistance levels underscores the token's inherent volatility.
Cautious Approach: Traders should monitor critical support zones as the token navigates a period of uncertainty.
Although SHIB has recently delivered strong returns, the token’s high volatility and the increased activity from large holders indicate potential challenges ahead. Investors are advised to proceed with vigilance as the market reacts to these developments.