A shift in market sentiment has been reflected in Shiba Inu’s (SHIB) recent decline below a critical support level. The cryptocurrency has moved below its 100-day Exponential Moving Average (EMA) and is nearing the important 200 EMA. Over the past 24 hours, SHIB’s price has dropped by -1.70%, now trading at approximately $0.00002142. The downward movement signals bearish momentum, with the token struggling to sustain its previous upward trajectory.
On-Chain Data Reveals Significant Large-Holder Activity
Key movements by large holders of SHIB have been observed through on-chain metrics. Addresses holding between $1 million and $10 million worth of SHIB have reduced their holdings by -10.17%. More concerning is the -28% decline in wallets with holdings exceeding $10 million.
Such sell-offs are concerning because large holders, also known as “whales,” typically play a vital role in maintaining market confidence and price stability. Their decision to reduce holdings could indicate profit-taking or a lack of optimism regarding SHIB’s short-term outlook. This trend is contributing to the bearish pressure surrounding SHIB.
Small Investors Show Mixed Sentiment
Smaller investors have exhibited inconsistent behavior. Wallets containing $1-$10 worth of SHIB have increased by 20%, reflecting minor interest from new or casual investors. However, these small inflows are unlikely to compensate for the significant outflows from larger holders.
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This discrepancy suggests that while there is still some interest among smaller investors, their influence on price stability remains limited in the face of larger sell-offs.
What Lies Ahead for Shiba Inu (SHIB)?
The recent loss of a vital support level has cast uncertainty on SHIB’s short-term performance. As the token approaches the 200 EMA, traders and analysts will closely monitor whether further declines can be avoided or if a recovery is possible.
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The ongoing large-holder sell-offs and minimal contributions from smaller investors make a reversal challenging in the near term.
For now, the market is watching closely for signs of renewed buying pressure or additional sell-offs that could shape SHIB’s trajectory in the coming days.
