Shiba Inu (SHIB) recently captured market attention with a dramatic spike in a key on-chain metric. Data from IntoTheBlock reveals that SHIB’s 90-day large holder outflows skyrocketed by 114.35%, suggesting that major players are moving substantial amounts of tokens out of their wallets. While this may appear like a bullish development on the surface, it could also serve as a red flag for potential bearish pressure.
Short-Term Momentum or a Warning Sign?
While SHIB saw a 47.55% increase in large holder outflows over the past seven days, the 30-day metric tells a different story, with a 44.61% drop. This contrast suggests that the recent surge in outflows is likely a reactive response, rather than part of a sustained trend of accumulation. Historically, such sharp outflows from large holders have often preceded market corrections, as whales may be preparing to offload their assets due to anticipated weakness.
That said, whale movement alone doesn’t guarantee a price collapse. Large holders could also be moving assets off-chain or into exchanges for purposes unrelated to immediate selling. However, it remains a key indicator for analysts and investors tracking market sentiment.
SHIB Still Struggles With Key Resistance Levels
On the technical front, SHIB’s price has made modest attempts to recover but continues to trade below two crucial resistance levels, the 50-day and 100-day Exponential Moving Averages (EMAs). These EMAs have consistently capped any upward movement for several weeks.
Additionally, SHIB’s Relative Strength Index (RSI) has slightly improved to 43, up from oversold levels, yet remains below the neutral 50 threshold. This suggests that bullish momentum is weak and not yet in control of the price action.
Related article: Mid-Term Shiba Inu Investors Accumulate 29.57 Trillion SHIB in June Amid Market Pressure
Interestingly, despite the whale outflows, SHIB’s price hasn’t experienced a corresponding drop. This stability hints at growing retail investor participation, which may be temporarily supporting the token. However, this support could be fragile. If trading volume continues to decline and momentum fails to recover, retail enthusiasm may fade, leaving the asset vulnerable to a price correction.
Final Thoughts: Proceed With Caution Near Resistance Zones
Although Shiba Inu’s on-chain data reflects significant whale activity, the current price structure doesn’t support a strong bullish breakout. For investors watching SHIB, it is critical to observe how the token behaves near resistance zones, especially if trading volume remains stagnant.
Until SHIB breaks through key moving averages and confirms buyer interest with rising volume, this recent whale activity may signal more caution than celebration. Short-term optimism needs to be tempered with a realistic view of market behaviour and resistance levels.
