SHIB whale activity plunged 84 percent in four days signaling retreat.
Netflows turned negative with 262B SHIB exiting large wallets.
SHIB trades in a tight range as short positions increase.
There are minor increases in the price of Shiba Inu (SHIB) similar to the behavior seen in the overall cryptocurrency market. However, recent metrics indicate growing pressure on the token’s price. The sharp decline in whale activity and a shift in large holder netflows raise concerns of a bearish reversal. Data reveals a significant slowdown in large transactions, signaling that major SHIB holders are backing away.
Whale Activity Falls Significantly in Four Days
Data from IntoTheBlock shows a steep 84% drop in whale transactions over the span of just four days. On June 5, SHIB whales executed transactions worth 24.3 trillion tokens. The total reached 3.83 trillion by June 9. The transactions demonstrate that wallets containing more than $100,000 in SHIB are reducing their holdings which indicates a cautious approach.
The withdrawal of whales from active participation may indicate reduced conviction in near-term price growth. Historically, such sharp drops in whale activity have preceded notable price corrections. In early January, a similar dip in large transactions led to a 50% drop in SHIB price by April 8. This repeated pattern is adding weight to a growing bearish sentiment around the asset.
Large Holder Netflows Reverse Into Negative Territory
Supporting the bearish trend, Shiba Inu’s large holder netflows have turned negative. Currently, the netflow sits at minus 262 billion SHIB. This metric shows the balance between inflows and outflows of whale-held tokens. A negative value implies more SHIB is being moved out of large wallets than being accumulated.
This shift typically reflects a loss of confidence among high-stake holders. When combined with falling transaction volumes, it underlines weakening demand from major investors. The market may struggle to find stability unless this trend changes. Consequently, the negative netflows point toward a growing willingness to exit positions and secure profits.
Price Remains Range-Bound as Sentiment Weakens
Shiba Inu price has been within a small range of $0.000010 and $0.000017 for three months. On the previous day, almost 4% was added to the price of the cryptocurrency. Even so, there is not much evidence that large investors are backing this move. It is pointed out by analysts that many traders have chosen to short the market, expecting it to move lower.
Once SHIB drops below important barriers, it may lead to losing its $0.0000119 support level. This level marks the lower boundary of a key trading channel. A breach below this line could prompt a sharper decline and add another decimal point to the price. The current positioning of traders and the absence of whale accumulation suggest caution for SHIB holders.
