Shiba Inu Whales Sell 359 Billion Tokens, Price Drops 8.4%

Shiba Inu, a popular memecoin, is currently experiencing significant selling pressure as both large holders and retail investors offload their tokens. In a notable development, whales sold 359 billion SHIB tokens in a single day, marking a substantial increase in outflows. This aggressive selling by whales, which saw a 229% surge in outflows from 109 billion to 359 billion SHIB, indicates a strong bearish sentiment in the market. The decrease in Large Holders’ Netflow to a monthly low of 4 billion SHIB further supports this trend, suggesting that large holders are actively distributing their tokens.

This bearish sentiment is not confined to whales; retail investors are also participating in the sell-off. The Buy/Sell Volume for Shiba Inu shows a negative order imbalance of 134.15 billion tokens, with a total of 1.2 trillion tokens sold. This imbalance suggests that sellers dominate the market, with a higher volume of sell orders being executed. Additionally, Shiba Inu’s Exchange Flow balance has turned positive, currently holding at 5.3 million SHIB, indicating that more tokens are being deposited into exchanges than withdrawn, a typical sign of selling activity.

The bearish trend is further confirmed by the positive Exchange Netflow that has persisted over the past two days. On May 2nd, Shiba Inu recorded a positive Netflow of 231 billion; it has since decreased to 21 billion SHIB tokens. This indicates a net flow of 252 billion tokens over two days, pointing to significant exchange inflow. Historically, rising exchange inflow coupled with outsized selling pressure has preceded sharp declines in price, suggesting that the supply of tokens is currently outweighing demand, setting up potential inflationary effects on the price. If this selling continues, SHIB may experience further corrections in the near term.

The elevated selling activity has adversely affected Shiba Inu’s price trajectory. Currently, SHIB is trading at $0.00001324, reflecting an 8.4% decline over the past week and a 1.84% drop in the last 24 hours. This ongoing decline underscores strong bearish sentiment in the market, positioning the memecoin at a critical juncture. Should selling pressures persist, SHIB could potentially dip to $0.00001274. Conversely, if buyers enter the market and challenge selling trends, it might reclaim $0.00001397, with the critical level for a bullish outlook being a daily close above $0.00001376.

The recent surge in selling pressure among Shiba Inu holders—both whales and retail investors—highlights a key bearish sentiment in the market. The combination of significant outflows, a negative order imbalance, and increased exchange deposits raises concerns over the potential for deeper price corrections without a counterbalancing buyer response. As the market evolves, investors should closely monitor these indicators to gauge future movements.