Chai Whale has remained cautious and reduced its actions in this round of market cycle. However, it is still possible to find a balance if it can successfully cope with the current pressure.

Shiba Inu Coin (SHIB) has come under heavy shorting pressure over the past 24 hours.

After a week of correction, SHIB rose 8% to $0.00001739 at the beginning of this week, but most of these gains have been given back and the current price is $0.00001701.

A recent report states that the market is changing and new memecoins are eating into the existing cryptocurrency market share. If this trend continues, SHIB may not become the opportunity that many predict will grow 100 times in the next year.

SHIB's whales are becoming more cautious

Currently, SHIB whales, who hold about 0.1% of the circulating supply, account for about 60% of all large holders, and hold a total of up to 590 trillion SHIB tokens.

However, in the past 24 hours, the activity of these whales has declined significantly, with large transactions decreasing by 35.41% and only 1.99 trillion SHIB being transferred.

Interestingly, while a large number of whales buying usually means that the market is close to bottoming, indicating a bargain hunting opportunity, this decline in activity may mean that the market has already reached a top, reflecting the weakening confidence of these big players in SHIB’s short-term prospects.

To verify this, a large number of investors sent 90 billion SHIB to exchanges in the past two days, causing the price to fall by 6%.

Although the cautious actions of whales have had an impact, the overall trend has not yet fully confirmed the arrival of a pullback, because…

Bulls are taking back control

From the daily chart, the MACD showed a bearish crossover, which coincided with the price decline, as some big players cut their positions. However, since then, the total net flow has turned negative, which means that longs have begun to enter the market and put money into SHIB to offset the selling pressure.

This marks an important moment in the recovery. The recent activity of SHIB whales has caused its price to fall, leaving many investors facing net losses.

However, if bulls continue to provide support, this could restore the confidence of those losing investors and incentivize holders to drive SHIB’s price correction – which is crucial for the upcoming rally.

Still room for growth

From a basic economics perspective, increased supply coupled with strong demand could lead to prices reaching equilibrium.

The recent net outflow of SHIB shows bullish market sentiment, indicating the potential for large-scale buying. Meanwhile, the RSI indicator also supports this view, currently at a neutral level.

However, the key lies in the continued upward trend, which largely depends on how SHIB holders respond after the whales sell off.

If the bulls can offset the selling pressure with aggressive buying, the SHIB could reverse and push the price closer to the previous rejection at $0.000020, which would be a potential breakout point.

But on the other hand, considering the volatility of the entire market and the continuous flow of funds into the emerging meme coin, consolidation between $0.0000175 and $0.0000160 seems more likely.