SHIB whale inflows dropped 83% in May, from 8 trillion to below 2 trillion tokens, showing lower large holder activity.

SHIB price trades under key resistance at $0.00001596, with the 50 EMA at $0.00001466 acting as dynamic resistance.

Shiba Inu (SHIB) whale inflows decreased significantly by 83% in May, while outflows also fell by over 80%, indicating a decline in large holder activity.

According to IntoTheBlock, SHIB whale inflows dropped from a peak of 8 trillion tokens to less than 2 trillion, signaling a contraction in liquidity and lower trading participation from whales.

However, despite a 12,715% surge in the SHIB burn rate on May 26, which saw 53.9 million tokens removed from circulation, the cryptocurrency's market volume and price remained relatively flat.

The SHIB burn rate hit an all-time high of 18,162,638 on May 26, removing a total of 53,916,456 tokens from circulation. This follows a previous report where the burn rate reached 1 billion SHIB in March.

The massive surge in the burn rate is likely attributed to a large transaction that day, as both the market volume and price of SHIB remained stagnant.

On the other hand, Bitcoin dominance has been steadily increasing, currently hovering around 51.2%. This indicates a potential shift in market sentiment towards Bitcoin and other major cryptocurrencies.

As seen on the chart, SHIB is currently trading below its long-term resistance level of $0.00001596, with the 50 Exponential Moving Average (EMA) at $0.00001466 acting as dynamic resistance for the token.

A breakdown of this resistance level could open the door for further gains, aiming for the next resistance at $0.00001823, which is the 1.272 Fibonacci extension from the March low to the April high.

Alternatively, a drop below the 50 EMA and the support level at $0.00001311 could lead to a decline towards the 100 EMA at $0.000011.

In the crypto market, SHIB faced difficulties breaking through the strong resistance at $0.00001596, despite attempts in March and April.

This resistance level is significant as it represents the price at which sellers canceled their orders, impacting the token's ability to sustain gains.

Moreover, the 50 EMA, currently at $0.00001466, is providing dynamic resistance to the token's upward movement.

A breach of this resistance could pave the way for a rally to the 1.272 Fibonacci extension of the March low to April high, offering a potential resistance at $0.00001823.

However, if the token drops below the 50 EMA and the support level at $0.00001311, it could continue to decline towards the 100 EMA at $0.000011.

Furthermore, the Relative Strength Index (RSI) on the 4-hour chart is indicating that the token is slightly overbought, with an RSI reading of 58.

This suggests that the token could face some selling pressure in the coming hours.

Overall, SHIB is showing signs of recovery after a period of decline.

The token is currently trading at a critical juncture, and any decisive move could have significant implications for its short-term trend.

Stay tuned for more updates on Shiba Inu and other cryptocurrencies.