The latest trends in Shiba Inu market activity highlight a troubling decline in whale participation. Net inflows from large holders have plummeted by 70% in a week, indicating that prominent investors are exiting the market. The impact is evident — the liquidity of SHIB is decreasing, keeping the price below $0.000014. Without inflows from large wallet holders, the prospects for a price rebound appear dim.
Currently, SHIB is trading within a descending triangle formation, a pattern typically associated with a bearish trend. The price has tested the support level around $0.000012688 but is struggling to break through the moving average acting as resistance. If SHIB can hold this support level, it has previously experienced strong demand, which could trigger a rebound to higher numbers between $0.000030000 and $0.000045000. A drop below $0.000010000 could open the door to lower support targets near $0.000005000.
In addition, the MACD trend confirms a bearish outlook, with the signal line remaining below zero. The histogram indicates a loss of momentum in the bullish trend. The bullish crossover of the MACD may provide the necessary push for SHIB to regain some ground, but this will largely depend on new buying interest.
The decrease in whale activity corresponds with a decline in SHIB active addresses, which fell by 6.86%. The number of new address registrations has also decreased by 6.94%. This sharp drop highlights a potential lack of interest from retail investors, which could adversely affect market dynamics. After peaking at 15.6k active addresses in February, the numbers have since declined, underscoring the fragility of SHIB user engagement.
Despite an astonishing 49,552% surge in the daily burn rate, this increase has not translated into substantial price changes. This observation reinforces the notion that on-chain metrics do not necessarily correlate with price fluctuations, indicating a complex relationship between supply dynamics and market performance.
In summary, Shiba Inu faces severe challenges from reduced whale activity and waning investor interest. The current trading pattern suggests that potential investors are adopting a cautious approach, as significant resistance exists at higher price levels. New entrants are essential for any upward movement. As the market continues to evolve, monitoring these trends is crucial for understanding SHIB's future price trajectory.
