Whale Selling Pressure Sends Shiba Inu (SHIB) Price Down 60% From Its ATH

Shiba Inu (SHIB) price has remained in a tight range in the past few months and underperformed most meme coins.

Shiba Inu price has remained in a tight range in the past few months and it has also massively underperformed most meme coins. SHIB was trading at $0.00001330 on Thursday, down by 60% from its highest point in December last year.

Shiba Inu is at risk as whales sell

On-chain data shows that Shiba Inu whales continued selling the coin this month, even as the crypto market rally happened.

As the chart below shows, SHIB holders with between 1 million and 1 billion tokens have been reducing their holdings in the past few months. Those holding 1 million and 10 million tokens now hold about 2.03 trillion tokens, down from 2.05 trillion in March.

As for those holding between 10 million and 100 million tokens, they now have 9.35 trillion coins, down from a high of 9.41 trillion in March. Finally, those with between 100 million and 1 trillion tokens now hold 17.96 trillion coins.

The ongoing transactions from these whales imply that they expect the price to remain under pressure this year. They are also selling it possibly as they rotate to other fast-growing meme coins like SPX6900 and Fartcoin.

More on-chain data reveals that the supply of SHIB coins on exchanges has risen this month. There are now 141.12 trillion coins on exchanges, up from 140.7 trillion earlier this month.

The rising exchange volume, coupled with the whale dumping and a negative network realized profit/loss is a sign that these investors are capitulating and opting to take a loss.

Shiba Inu price is also facing other challenges. Shibarium has a total value locked (TVL) of just $3 million, more than 2 years after its launch. In contrast, recently launched chains like Unichain and Sonic have millions of dollars in volume.

Shiba Inu price is hanging on a thread

The three-day chart shows that the SHIB price is trading at a crucial support level. Its current price of $0.000013 is a few points above the ascending trendline that connects the lowest swings since September 2023. It has failed to move below this level several times since that time.

Shiba Inu price has also formed a bearish flag pattern, a popular continuation signal. This pattern comprises of a vertical line and a pattern resembling a hoisted flag.

SHIB is also much lower than the 50-day and 100-day moving averages, while the Relative Strength Index (RSI) moved below the zero line. Therefore, the token will likely have a bearish breakdown in the coming weeks. Such a move will have it drop to the support level at $0.000010.