Shiba Inu Faces 18% Decline Risk as Whale Activity Surges 175.86%

Shiba Inu (SHIB) is currently at a critical juncture, with market movements suggesting a potential decline of up to 18% if key support levels fail to hold. The cryptocurrency is experiencing heightened whale activity, which typically signals accumulation, but recent sell-offs indicate a possible sharp decline. The current price of SHIB is holding at $0.0000143, with strong demand observed between $0.0000139 and $0.0000144. The Relative Strength Index (RSI) is at 46.92, indicating a neutral market sentiment with neither aggressive buying nor selling.

Recent data indicates that whale transactions involving Shiba Inu surged by 175.86% in the $100K–$1M range over just a 24-hour period. This spike in large transactions contrasts sharply with a significant reduction in smaller retail transactions, emphasizing a shift in market dynamics. The $10-$100K transaction bracket experienced a corresponding 147.79% increase, highlighting that while retail investors are exiting, larger players are capitalizing on what they perceive as an undervalued asset. The increasing whale activity appears to be at odds with retail investor sentiment, where smaller transaction sizes have decreased markedly—69.62% for $10-$100 transactions and 21.10% for $100-$1K transactions. This suggests a burgeoning divide in market confidence and behavior, which could be pivotal for future price movements.

Current technical assessments reveal that if SHIB fails to maintain a daily close above $0.00001240, the memecoin could face a steep decline, possibly around 18%. This placed SHIB at a critical juncture where its price action will dictate immediate market sentiment. The prevailing sentiment is marked by heightened caution among investors, with many choosing to aggregate short positions rather than trading long. At $0.00001306, cumulative short liquidations have surged to $942K, significantly outpacing the $612K seen in long liquidations. This trend indicates a bearish outlook that could further amplify downward pressure on the price.

Analysts are closely monitoring the situation, with some predicting a potential 17% price swing if the current support levels are breached. The formation of a descending triangle on the 4-hour chart suggests that SHIB is compressing within this structure, which could lead to a significant breakout in either direction. The direction of the breakout will depend on whether the price tests the upper resistance or lower support line next. If the price breaks below the support level of $0.0000139, it could accelerate toward deeper support levels, potentially leading to an 18% decline.

The market volatility and whale activity add to the uncertainty surrounding SHIB's future price movements. Whales, who hold large amounts of SHIB, have been accumulating the cryptocurrency, which could provide some support to the price. However, the recent sell-offs and market volatility suggest that the price could be vulnerable to further declines if the support levels fail to hold. In summary, SHIB is facing a critical moment with the potential for an 18% decline if key support levels are breached. The heightened whale activity and market volatility add to the uncertainty, making it a challenging time for SHIB investors. The next few days will be crucial in determining the direction of SHIB's price movements, as the market awaits a potential breakout from the current descending triangle formation.