Shiba Inu Sellers Reach Crucial Support Level – Will This Metric Plunge SHIB Price Further?

The broad market selloff led to the erasure of all gains the memecoin sector had accumulated over the past two months. Shiba Inu, often referred to as the “Doge killer,” experienced a significant drop from its eagerly watched price point of $0.00001, primarily due to the liquidation of long positions. At present, SHIB’s price is approaching a crucial support, causing traders to worry about potential further drops. Additionally, a decrease in whale activity since the price downturn suggests a possible sharp decline in SHIB’s value.

Whale Activity Continues To Decline

According to data revealed by IntoTheBlock, whale activity within the Shiba Inu ecosystem has seen a notable downturn over the last few days. The trend accelerated following the market crash, with high-value transactions dropping over $130 million.

The large transaction volume has dropped from a high of $139 million to just $9 million on 19 August. However, it has recovered slightly since then, currently hovering around $44 million. This is a significant drop in whale dealings. This steep fall triggers concerns of further selloff by whales, which might lead to a significant drop.  

Moreover, there’s a steep decline in large transactions (>$100K) as the metric dropped from the high of around 170 to just 21. Such a reduction in activity from the whales, typically viewed as market influencers, might signal impactful shifts for the SHIB token’s market direction and value.

Whales’ recent reduced activity in the SHIB ecosystem could lead to decreased market liquidity and increased volatility. Two primary conclusions emerge from this trend: First, whales might be consolidating their holdings, waiting for a profitable moment.

Second, these influential players might be diversifying, redirecting their investments towards other promising tokens or assets.

What’s Next For SHIB Price?

Bulls attempted to push the SHIB price above $0.0000084 but faced increased bearish activity. As a result, the price dropped to the crucial support line of $0.000008. This likely triggered stop-losses on long trades and prompted bearish selling. As of writing, Shiba Inu’s price trades at $0.00000811, declining over 2% in the last 24 hours.

SHIB’s price is settled near $0.000008, indicating a bearish dominance. The downward trend continues to intensify, with the bears pulling the price under the 23.6% Fib channel. However, minor buying at this lower level provides a slight confidence for the bulls.

If the price successfully rebounds from the support of $0.000008, we might see robust buying activity among bulls, pushing the price to the North. A break above $0.00000883 will send the price to its old momentum near $0.00001043.

On the other hand, a break below $0.000008 will trigger another wave of selling activity, plunging the price to the zone of $0.0000068-$0.000007, where SHIB might consolidate for some time.