Shiba Inu Plummets 10% as Whales Sell Off Amid Market Weakness

Shiba Inu, a leading meme coin, has experienced a significant decline in value over the past week, shedding nearly 10% of its worth. As of the latest data, SHIB is trading at $0.0000125. This price drop coincides with a notable decrease in whale holdings during the same period, indicating a loss of confidence among large investors amidst broader market weakness.

According to data, SHIB’s large holders’ netflow has fallen by 123% in the past week, coinciding with an 8% price dip. Large holders refer to whale addresses that hold more than 0.1% of an asset’s circulating supply. Their netflow measures the inflow and outflow of tokens in their wallets, tracking whether they are accumulating (positive netflow) or offloading (negative netflow) their holdings. When this metric falls, it suggests that whales are selling large portions of their assets, leading to increased supply and putting more downward pressure on the price.

This decline in SHIB whale netflow could exacerbate the weakening confidence among SHIB retail traders, prompting them to sell their coins in anticipation of further losses. This could accelerate SHIB’s price dip in the short term. On the daily chart, SHIB’s falling Relative Strength Index (RSI) supports this bearish outlook. At the time of writing, this momentum indicator is in a downward trend at 35.34. An asset’s RSI measures its oversold and overbought conditions, ranging between 0 and 100. Values above 70 indicate that the asset is overbought and due for a decline, while values under 30 suggest that the asset is oversold and could witness a rebound. At 35.05, SHIB’s RSI indicates that the asset is approaching oversold territory but has not fully entered it yet. This suggests weakening buying pressure and hints at the potential for further downside unless the meme coin demand picks up.

SHIB has remained below a descending trend line since December 8, keeping its price in decline. This pattern is formed when an asset’s price consistently makes lower highs over a period, connecting these peaks with a downward-sloping line. It is a bearish trend, indicating sustained selling pressure among SHIB market participants. If this decline continues, SHIB risks falling to a seven-month low of $0.0