Shiba Inu Faces Exclusion From Two Prominent Communities - Increasing Sell Pressure?
Shaking Up Shiba Inu: Whales Unload 359 Billion Tokens, Signaling Bear Market for Memecoin
Shiba Inu [SHIB] has been hammered by a relentless wave of selling, with whales offloading an eye-watering 359 billion tokens in a single day.Selling frenzy grips the memecoin as all market participants scramble to exit their positions.
This week, Shiba Inu finds itself in turbulent waters. It seems even the most dedicated HODLers can’t resist the urge to sell, as they watch their beloved memecoin plummet.
According to IntoTheBlock, it's the whales that are causing Shiba's woes. These gargantuan investors have seen their offloading skyrocket by a jaw-dropping 229%, pumping out a staggering 359 billion SHIB.
Large Holders' Netflow plummeted to a dismal monthly low of 4 billion SHIB, a clear sign of an intense distribution spree.
Dig deeper and you'll find that it's not just the whales causing chaos. All market participants, large and small, are jumping on the sell boat.
The sell-off isn't just whale territory
It seems even the smallest fry in the sea are getting in on the action. Coinalyze data shows that Shiba Inu's Buy/Sell Volume chalked up a dismal negative order imbalance of 134.15 billion - a figure that speaks volumes about the strength of the selling pressure. In total, a whopping 1.2 trillion tokens have changed hands.
Santiment underlines this trend, revealing a negative imbalance that suggests sellers are calling the shots, with more sell orders getting executed than buy orders.
It gets worse. Shiba Inu's Exchange Flow balance is swimming in the red, now pegged at 5.3 million SHIB, implying that more tokens are heading to exchanges for selling than are coming back the other way.
CryptoQuant's analysis provides further evidence to support the theory that the bear is circling Shiba Inu. The platform shows a positive Exchange Netflow that has remained consistent over the past two days, at 21 billion SHIB tokens as of May 4th.
When the whales sell, the bears scent blood
Historically speaking, when whales open the floodgates and sell on this scale, they send a clear message: they've lost faith in the market and expect prices to drop.
And it's not all doom and gloom for SHIB. If this trend continues, we could see SHIB plunge even further. At the time of writing, the memecoin was languishing at $0.00001324, having shed 8.4% of its value over the past week and 1.84% in the last 24 hours.
If sellers maintain their upper hand, we could see SHIB slide down to $0.00001274. But if the buyers manage to mount a comeback, they may rise back up to $0.00001397.
For the bulls to stand a fighting chance, they need SHIB to close the day above $0.00001376.
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- TweetWith Shiba Inu's reputation as a meme coin, its recent setbacks are no surprise. Here’s a closer look at some underlying factors contributing to its bearish predicament:
- Waning Interest: Memecoins thrive on hype and enthusiasm. When investor interest wanes, trading volumes decrease, contributing to increased sell pressure[4].
- Price Action Stuck in a Rut: Shiba Inu's price has been fluctuating within a narrow range, setting the stage for potential bearish reversals[1][4].
- Large Whales' Influence: Whales play a crucial role in crypto markets. When they sell in large quantities, they can drive down the price by flooding the market with sell orders[2].
- Technical Factors: Divergent price action between SHIB and its moving averages can signal decreasing price momentum, indicating a potential bearish trend[3].
The outcome of these elements could:
- Trigger price declines: If SHIB fails to break out of its current narrow trading range and key resistance levels, a continuation of the downward trend might ensue[5].
- Increase volatility: As SHIB's volatility increases, so too does the risk. So even if the memecoin breaks out, losses can quickly pile up due to wild price swings[1].
- Delay the $1 target: Reaching the $1 mark any time soon seems highly unlikely given the current market dynamics and sentiment[1].
- The whale investors have significantly intensified their selling activity in Shiba Inu, offloading a massive 359 billion tokens in a single day.
- OntoTheBlock's analysis reveals a steep fall in Large Holders' Netflow, which dropped to a monthly low of 4 billion SHIB, indicating an intense distribution spree.
- Not only the whales, but all market participants appear to be cashing out, as shown by Coinalyze data, with a dismal negative order imbalance of 134.15 billion SHIB.
- The sell-off has been so widespread that even small investors are participating, contributing to a significant 1.2 trillion tokens being traded.
- Santiment's data echoes this trend, suggesting a negative imbalance, with more sell orders being executed than buy orders.
- Shiba Inu's Exchange Flow balance is also negatively affected, with more tokens being sent to exchanges for selling than returning.
- CryptoQuant's data supports the theory of an incoming bear market for Shiba Inu, as it shows a consistent positive Exchange Netflow of 21 billion SHIB tokens over the past two days, implying increased selling pressure on the memecoin.
