Whales Have Dumped 10 Trillions of SHIB Tokens, Plunging the Price by 60% From Its All-Time High

On-chain data reveals that large Shiba Inu investors, referred to as whales, sold their tokens as the coin's value declined.

Shiba Inu price has come under pressure over the past five months, dropping by 60% from its peak in November last year.

On Tuesday, SHIB was trading at $0.00001355 as it struggled to clear the crucial resistance level at $0.00001522, making it difficult for the coin to continue recovering.

The recent recovery attempts stalled as large Shiba Inu investors, known as whales, sold their tokens, according to on-chain data.

Whales Dumped 10 Trillion Tokens

As the coin's value declined, these whales sold their tokens to take part in the unfolding bear market rally.

According to Santiment numbers, the supply held by whales has decreased from 743 trillion tokens in January to 733 trillion today. This indicates that these holders have reduced their holdings by over 10 trillion tokens.

Considering the current price of Shiba Inu, these tokens are worth over $137 million.

These whales likely sold their tokens to take profits since the coin jumped by over 200% from its lowest point in August to its highest level in November last year. It is normal for investors to prefer to scale back their positions after such a strong run.

Additional data indicate that the Mean Dollar Invested Age (MDIA) over the last 365 days has also declined significantly. It dropped from 205.2 in February to 149 today.

Additionally, the 365-day Mean Coin Age dropped significantly, providing further evidence of distribution.

A likely reason for the recent Shiba Inu price recovery stalling is Ethereum's position, remaining below the significant resistance level of $2,000. In many cases, SHIB and other Ethereum meme coins like Pepe and Dogelon Mars are impacted by Ethereum's price action.

On a positive note, Shiba Inu possesses some of the strongest fundamentals in the meme coin industry. It has created a whole ecosystem, including launching Shibarium, a layer-2 network, and incinerating trillions of coins.

Shiba Inu Price Prediction

In our recent note on SHIB Coin, we noted that the coin would undergo a short squeeze of 145%. The article referenced a double-bottom pattern that formed at $0.00001078. A double bottom is one of the most popular bullish reversal patterns in technical analysis.

It occurs when the price hits a low, bounces back up, and then tests the low again. However, the risk remains as the coin has not cleared the neckline at $0.00001522, which is critical for validating the pattern.

It has also formed a dragonfly doji candlestick pattern, which is made up of a long upper shadow and a small body. This pattern is often viewed as a promising reversal sign.

Finally, the Relative Strength Index (RSI) on the four-hour chart has dropped below the 50 mark, which suggests that the sellers are gaining momentum over the buyers.

Therefore, there is a risk that the Shiba Inu price may decline and potentially retest the double-bottom level at $0.00001078.

On a positive note, the coin remains above the 50-day moving average, suggesting that it is possible for it to bounce back. A move above the neckline at $0.000015 will validate the original bullish thesis.

News data source: kdj.com

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