Shiba Inu Drops 2.707% Amid Whale Sell-Offs, Network Upgrades

Shiba Inu's latest price was $0.00001165, down 2.707% in the last 24 hours. This decline is largely attributed to major sell-offs by whales rather than renewed investor interest. Analysts suggest that these whales are using the current market conditions to exit their positions, which has led to sustained selling pressure and constrained price action beneath key moving averages.

Historically, such a rise in trading volume without corresponding price growth has often preceded bearish trends. This pattern is currently being observed with SHIB, as red volume bars continue to dominate the charts, indicating ongoing selling pressure. Despite this, there are signs of potential reversal, with SHIB recently rebounding from a critical demand area near a key support level. This move aligns with a descending wedge pattern, which is often interpreted as a potential reversal indicator. The token is currently consolidating in a tightening channel, with resistance projected between certain levels. Continued support above the key demand area is essential for this pattern to validate and potentially lead to a trend reversal.

In other developments, Shiba Inu has launched the Shib Alpha Layer on the Shibarium network. This upgrade offers multi-gas token support and integrates Fully Homomorphic Encryption (FHE) through ZAMA, enabling encrypted smart contract logic. This development is part of Shibarium's progress toward becoming a Layer-3 settlement framework, with faster cross-chain bridging and developer-focused tooling. The Alpha Layer is designed to support real use cases, moving beyond speculative narratives and providing concrete tools for developers. On-chain activity remains consistent, supported by platforms like K9 Finance DAO and ShibaSWAP DEX.

Shiba Inu's ecosystem has also faced challenges, with Shibarium's total value locked (TVL) dropping by 23% over the past 30 days. ShibaSwap, a key player in the ecosystem, has seen a decline in transaction users and daily transactions. Despite these challenges, Shiba Inu's daily token burn rate surged by 809%, which is generally seen as a bullish signal by long-term investors. This increase in the burn rate reduces the circulating supply, which could potentially support future price movements.

Technical analysis of SHIB shows a sustained downtrend over the past few weeks, with the token breaking below key moving averages. However, there are signs of a potential double-bottom pattern forming, which could trigger a bounce back toward resistance levels if the support holds. Additionally, a symmetrical triangle pattern is forming on the charts, which could lead to a significant rally if SHIB manages to break above the upper boundary of the triangle. This pattern often precedes sharp market movements, especially when supported by volume spikes.

On-chain data from Santiment reveals that over 211 million SHIB tokens were sold at a loss on June 16, the highest recorded since March. This is often interpreted as a signal of capitulation, where short-term traders exit the market, allowing long-term holders to take over. Historical parallels suggest that such loss-driven sell-offs have been followed by quick recoveries in the past. This data point suggests that current market conditions could mark a bottom, clearing the path for accumulation by long-term believers.

Despite the potential for a rally, SHIB faces several technical hurdles. The 50-day simple moving average remains a key short-term resistance, while the 200-day moving average is a major threshold for a larger rally. The Relative Strength Index (RSI) stands at 37, indicating weak momentum, but a drop closer to 30 could signal that selling pressure is waning, potentially drawing in opportunistic buyers. While short-term sentiment around SHIB remains cautious, the combination of technical formations and investor behavior suggests a pivotal moment may be unfolding. It is important to approach such signals with a balanced view, considering both the speculative nature of memecoins and the data-driven patterns underpinning recent movements.