Shiba Inu Faces 114.35% Whale Outflows in 90 Days

Shiba Inu (SHIB) has recently experienced a notable shift in market dynamics, with large holder outflows surging by 114.35% over the past 90 days. This significant increase in outflows suggests that major holders are exiting their positions, potentially in anticipation of a market softening. Despite a recent rally that has caught the attention of retail investors, the surge in outflows indicates that the upward momentum may be short-lived.

The data reveals a contrasting trend when examining different time frames. While the seven-day metric shows a 47.55% increase in whale outflows, the 30-day change remains down by 44.61%. This discrepancy suggests that the recent surge in outflows is more of a reactive measure rather than a consistent trend of accumulation. Historically, such patterns have been associated with asset liquidation by large wallets, raising concerns about the sustainability of SHIB's recent gains.

Technical indicators further support the cautionary signals from on-chain data. SHIB's price continues to trade below the 50-day and 100-day exponential moving averages, which have acted as significant resistance levels, suppressing upward momentum for several weeks. The Relative Strength Index, although slightly improved, remains below the neutral threshold of 50, indicating that the token is still in a bearish territory.

Despite the increased outflows from large wallets, SHIB has managed to maintain its price levels, which can be attributed to consistent activity from smaller holders and increased retail interest. However, this support may weaken if trading volume continues to decline and momentum stalls further. The current rally, while supported by retail buying, is under growing pressure due to the weakening volume and the presence of technical resistance levels.

Analysts are closely monitoring changes in trading volume and exchange inflows near resistance zones to gauge the sustainability of the current rally. Without stronger signals of accumulation or broader investor confidence, the recent price gains may lack durability. The market environment for SHIB remains complex, with the token facing significant challenges that could cap its upside potential.

One of the key obstacles for SHIB is the presence of a large supply wall, estimated to be around $400 million. This substantial block of SHIB creates a shadow of selling pressure, as it needs to be absorbed before the token can experience significant price appreciation. Until this supply is absorbed, SHIB's upside remains capped, limiting its potential for further gains.

In summary, while SHIB has shown signs of a short-term rally and retail support, it continues to face significant whale pressure and technical resistance. The presence of a large supply wall and the token's struggle to break through key resistance levels indicate that SHIB's upside potential is currently limited. Retail investors will need to continue providing buying pressure to help the token overcome these challenges and achieve further price appreciation.