Shiba Inu (SHIB) is facing renewed selling pressure, with price action suggesting a potential 18% drop if critical support levels fail to hold. Despite the bearish outlook, large holders—or whales—are actively buying the dip, raising questions about what they might know that retail traders don’t.
Price Drops Over 7.5% Amid Market Volatility
At the time of writing, SHIB trades near $0.00001240, having declined more than 7.5% in 24 hours. This drop has occurred in the context of increased volatility, leaving the memecoin vulnerable to further downside if current support breaks.
Technical analysts warn that a daily candle close below $0.00001240 could trigger an 18% decline. The asset is now trading below its 200-day EMA, signaling a longer-term downtrend.
Whale Activity Surges Despite Bearish Signals
While retail traders appear to be exiting the market, on-chain data from IntoTheBlock shows that whales are actively accumulating.
Transactions worth $100K–$1M surged by 175.86% in the past 24 hours. Similarly, the $10K–$100K range saw a 147.79% increase, suggesting significant institutional interest.
In contrast, retail participation has plummeted:
- $10–$100 transactions fell 69.62%
- $100–$1K transactions dropped 21.10%
This divergence highlights a clear shift from retail to institutional hands during the price dip.
Short Positions Dominate Market Sentiment
According to data from CoinGlass, short sellers are heavily active, with nearly $942K in cumulative short liquidations around $0.00001306. This compares to only $612K in long liquidations, indicating a strong downside bias.
If the price falls below current levels, further short-driven selling could intensify the move down.
What to Watch: Key Levels and Sentiment Shifts
The $0.00001240 support is now crucial for SHIB’s near-term trajectory. A break below this level could confirm a bearish continuation, while a sustained bounce might trigger a reversal and an 18% rebound—mirroring past behavior.
Whale accumulation suggests that large players are betting on recovery, but retail traders remain cautious. As sentiment diverges between smart money and the general public, SHIB’s next move could prove pivotal.