The Shiba Inu (SHIB) cryptocurrency is making headlines for alarming on-chain activity. Data from IntoTheBlock reveals a staggering 7.48 trillion SHIB tokens were offloaded by whale addresses in the last 24 hours. This marks a jaw-dropping 712% increase from the previous day’s outflows of 1.05 trillion SHIB, raising questions about the token’s short-term stability and market sentiment.
Breaking Down the Whale Activity
• Whale Outflows Surge:
The activity includes wallet addresses holding at least 0.1% of SHIB’s circulating supply, indicating large holders are exiting their positions.
• Increased Inflows:
Alongside the massive outflows, inflows to whale wallets also rose, totaling 7.41 trillion SHIB, an 89.5% increase from the previous day.
• Netflow Turns Negative:
Despite the higher inflows, the netflow dropped dramatically, flipping from 2.86 trillion SHIB to -72.77 billion SHIB, highlighting a clear shift in sentiment.
SHIB Price Action: A Bearish Signal
The surge in whale selling coincides with a sharp drop in SHIB’s price. Over the last day, the token fell 8.24%, stabilizing at around $0.000023. This selling pressure appears to be tied to:
1. Critical Support Threatened:
The price approached a key support zone, increasing fears of further declines.
2. Recent Rally Stalls:
SHIB’s recent rally, which brought 80% profitability since early November, failed to break past local highs, forming a “double-top” pattern—a bearish technical indicator.
Why Are Whales Selling?
The sudden spike in whale outflows could be attributed to multiple factors:
1. Profit-Taking:
Many whales may be locking in profits after SHIB’s strong rally in November.
2. Bearish Market Indicators:
The failure to surpass key resistance levels and the ominous chart pattern are likely prompting large holders to exit.
3. Fear of Further Declines:
As SHIB’s price teeters near critical support, whales may be anticipating more downward pressure.
What’s Next for SHIB?
The sharp increase in whale selling raises concerns about SHIB’s short-term outlook. If selling pressure continues, the token could face further declines, especially if it breaks below its critical support level. On the flip side, the increased inflows to whale wallets suggest some investors may still see value at lower prices, providing potential support.
Key Takeaway
Shiba Inu’s current situation highlights the volatility often associated with meme-inspired cryptocurrencies. While the recent rally brought substantial profits, the rising whale sell-offs and bearish technical signals underscore the need for caution. Traders and investors should monitor key levels closely as SHIB navigates this critical period.
