Shiba Inu Drops 37% From May High, Whales Cut Holdings 80%

Shiba Inu, a popular meme coin, experienced a significant drop, reaching an intraday low of $0.000010 on Sunday, marking its weakest point in 16 months. This decline has raised concerns among investors, with the coin slipping 14% since the beginning of June and 37% from its May high of $0.00001764. The cautious sentiment is also reflected among big holders, with whale wallets down about 80% and open interest in Shiba Inu futures falling to $123 million, a level last seen in early April.

Despite the recent downturn, market analyst Tom Tucker suggests that the current situation could set the stage for a sharp turnaround. According to Tucker’s June 22 chart examination, Shiba Inu appears to be forming a classic double bottom on its daily price graph. This pattern often signals that a sell-off has run its course. SHIB first bounced off roughly $0.00001028 on April 7, climbing 70% to reach $0.00001765 by May 12. Now that the coin has revisited that support zone at around $0.00001030, traders will be watching closely to see if history repeats itself.

Tucker emphasizes that for Shiba Inu to confirm the double bottom, it needs to stay above $0.000010. The token has already climbed 7.7% from Sunday’s trough to trade around $0.00001081. If the support holds firm, Tucker predicts a 62% rally that would lift SHIB to about $0.00001752, practically matching last month’s peak. This prediction is based on the technical analysis of the double bottom pattern, which suggests a potential rebound if the support level is maintained.

The recent decline in major holder balances indicates a shift in market sentiment among Shiba Inu's biggest fan base. Whale positions have been 80% lower from its May high, and the decline in open interest hints that leveraged speculators are not taking as much risk. These moves suggest that caution is likely to persist until the buyers return en masse. The Shiba Inu ecosystem’s marketing lead, Lucie, has asked the community to stay calm, reminding supporters that market swings are part of the journey and that holding through downturns could pay off down the line.

Investors seeking a clear entry point might find the present price action appealing. If SHIB manages to hold above that $0.000010 support, a rapid recovery is in the cards. However, if the coin goes below that line, the next move down might take it to even lower levels. Traders should be observing volume, whale actions, and the larger crypto market sentiment before making their next move. The Shiba Inu team urges patience, emphasizing that the rally to $0.01 is still the long-term goal, and that reaching that milestone means not “panic” and stay resilient.