Shiba Inu ($SHIB ) has hit a rough patch, struggling to maintain momentum in the crypto market. Over the last 24 hours, only 1.2 trillion SHIB tokens were traded—significantly lower than the peak of 4 trillion SHIB just a week ago. This sharp decline in transaction volume has raised concerns among investors, highlighting the shifting sentiment towards the meme coin.

Declining Transaction Volume Raises Red Flags

The drop in transaction volume indicates that major holders, known as “whales,” are reducing their SHIB holdings. These large investors play a critical role in keeping the price stable, and their withdrawal suggests a loss of confidence in the coin’s prospects. The decrease in institutional participation further highlights a cautious mood across the market.

SHIB has also struggled to hold key support levels and break through its resistance at $0.000017. Without overcoming this barrier, the token has faced significant selling pressure, leading to uncertainty about its future trajectory.

Whale Behavior and Market Sentiment

The selling activity from whales signals concern, which can spread fear throughout the market and discourage new buyers. This reflects the importance of market psychology, where fear of missing out (FOMO) can drive prices up, while fear of losses can trigger more selling. With doubts mounting over SHIB’s ability to recover, more investors are cashing out, adding downward pressure on the price.

Hope from Long-Term Support

Despite the current challenges, there’s still some hope. The 200-day moving average, a critical technical indicator, has historically provided strong support for SHIB, preventing further declines. If SHIB can stay above this level and attract new buyers, it may stage a recovery. However, market conditions and whale behavior will play a crucial role in determining whether this rebound materializes.

What’s Next for SHIB?

For Shiba Inu to reverse the current trend and regain investor confidence, it will need a significant boost in buying activity. Without this support, the token may struggle to make meaningful gains. The continued exit of large investors and weak market sentiment create a challenging outlook, and the coin’s ability to recover remains uncertain.

Conclusion

The recent 1.2 trillion SHIB transfer in a single day highlights the challenges Shiba Inu is facing. This significant drop from 4 trillion SHIB last week reflects growing caution among investors, with whales reducing their exposure. SHIB’s failure to hold key levels and break through critical resistance further adds to the uncertainty. However, if it can stay above the 200-day moving average and attract fresh buying interest, the token might still have a chance to recover.

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