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Major Decoupling of Shiba Inu from Two Crucial Communities - Bloom in Selling Pressure?

Massive Shiba Inu Token Selling: Over 359 Billion Tokens Offloaded in a Day by Major Holders

Major Decoupling of Shiba Inu from Two Crucial Communities - Bloom in Selling Pressure?

Title: Shiba Inu Faces Intense Sell-off: Whales Dumping 359 Billion Tokens as Bears Take Control

Shiba Inu [SHIB] is currently battling overwhelming sell pressure, spurring large holders and retail investors to offload their tokens en masse.

Data from IntoTheBlock shows a staggering 229% surge in whale outflows, with the number of SHIB tokensdumped jumping from 109 billion to a whopping 359 billion. This massive outflow indicates a sharp increase in selling activity among the largest holders, possibly signaling a lack of confidence in the market as they anticipate prices to plummet.

Similarly, the Netflow for Large Holders plummeted to a monthly low of 4 billion SHIB, reflecting aggressive distribution.

All Hands on Deck: Sell-off Sweeps All Market Players

Not just the whales, but it appears all market participants are jumping on the selling bandwagon. Shiba Inu's Buy/Sell Volume reveals a negative order imbalance of 134.15 billion, suggesting that sellers have an upper hand with more sell orders being processed.

Furthermore, Shiba Inu's Exchange Flow balance shows a positive balance of 5.3 million SHIB, indicating that there are more deposits into exchanges than withdrawals. This ordinarily signals selling activity since holders are transferring their tokens to sell.

Heavy Selling Weighs on SHIB: Netflows Support Bearish Trend

This bearish sentiment is further solidified by a positive Exchange Netflow that has persisted for the past two days. On the 2nd of May, Shiba Inu recorded a positive Netflow of 231 billion, which subsequently settled at 21 billion SHIB tokens. This indicates a netflow of 252 billion tokens over the past two days, suggesting a surge in exchange inflows.

Such trends have historically preceded sharp price declines as the token supply exceeds demand, contributing to inflationary effects on prices.

The Impact on Shiba Inu

Unsurprisingly, the increased selling activity has had a detrimental effect on Shiba Inu's price action. At press time, SHIB is trading at $0.00001324, recording an 8.4% decrease on the weekly chart and a 1.84% fall over the last 24 hours.

Should sellers continue to dominate, SHIB could potentially drop to $0.00001274. However, if buyers re-enter the market and challenge the bears, the memecoin may reclaim $0.00001397. To achieve this bullish outlook, SHIB must close the day above $0.00001376.

Additional Insight: This intense sell-off can be attributed to a couple of key factors:

  1. Resistance Clusters: A substantial number of SHIB tokens are being held by investors who acquired them at higher prices. For example, about 538.04 trillion SHIB are being held between $0.000014 and $0.000019 by 145,600 addresses. This region acts as a formidable resistance zone, as many of these holders might sell their SHIB once the market price reaches their average cost, aiming to either break even or recoup losses.
  2. Profit and Loss Distribution: A significant percentage of SHIB holders are currently in a loss position. Roughly 82.70% of addresses hold 814.57 trillion SHIB, equating to around $11.39 billion in unrealized losses. As the price nears levels where these holders initially bought SHIB, many may decide to sell to offset those losses, further exacerbating the selling pressure.

These factors have considerably affected SHIB's price by creating barriers for sustained upward momentum. Despite brief periods of recovery, such as a 18% surge in late April, the cryptocurrency continues to struggle to break through resistance levels and draw in fresh buying pressure. For SHIB to see significant price gains, it must convincingly breach these resistance levels and elicit additional buying pressure to outweigh the selling pressure.

  1. The extreme selling pressure faced by Shiba Inu [SHIB] has led to an increase in the number of tokens being sent to exchanges, as indicated by the Shiba Inu Exchange Flow balance.
  2. Amidst the current bearish market, the Netflow for Large Holders has plummeted, indicating a sharp increase in selling activity among the largest holders of SHIB.
  3. The sell-off in Shiba Inu has extended beyond the whales, with the Buy/Sell Volume revealing a negative order imbalance, suggesting that sellers have a dominating position in the market.
  4. The intense sell-off affecting Shiba Inu can be attributed to the presence of resistance clusters and the profit and loss distribution among holders, creating barriers for sustained upward momentum.
Expensive holders of Shiba, collectively referred to as whales, have offloaded an enormous 359 billion Shiba Inu tokens within a 24-hour span. This cryptocurrency is currently witnessing considerable selling actions from all its market participants.

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