Shiba Inu’s position as one of the more well-known meme coins on the market is in jeopardy due to increasing pressure from both the technical and on-chain fronts. SHIB may be losing favor with major holders as price action drops below important support levels and on-chain activity decreases.
Technically speaking, SHIB has maintained its downward trajectory, currently trading at about $0.0000107 after momentarily falling close to the psychological $0.000010 mark. There is a clear bearish trend as the asset has broken below the 50-100 and 200-day EMAs, the three main moving averages.
SHIB/USDT Chart by TradingView
A lack of buying momentum is indicated by the RSI hovering below 40, and recent recovery attempts have been feeble and short-lived. The volume profile presents an unsettling image as well. There are no indications of accumulation or whale interest, and the daily trading volume has drastically decreased. If buyers do not intervene, price rejection near prior support zones – now serving as resistance around $0.000012 and $0.0000134 – signals additional downside risk.
You Might Also Like
This decline in interest is reflected in IntoTheBlock’s on-chain data. Just 73,197 billion tokens were exchanged on SHIB in the last 24 hours, which is the lowest amount in the previous seven days. From the seven-day high of 16.42 trillion SHIB on June 16, this represents a startling decline. SHIB’s optimistic outlook is threatened by the steady decline in large transaction volume, which points to less activity from institutional players or whales.
You Might Also Like
In addition, SHIB’s price has been declining in tandem with the drop in whale activity. The idea that major market player withdrawals have had a major influence is supported by the correlation between the token’s market price and high transaction volume. SHIB might lose its reputation as one of the few meme coins that can boast of daily trillion-token movements if this trend keeps up.
SHIB requires both a rebound in trading volume and a resurgence in whale interest in order to restore confidence, but neither of these things seems likely to happen anytime soon.
