Shiba Inu clings to key support as large holders offload tokens

Key takeaways

• Shiba Inu is trading near $0.00000516 after bouncing nearly 4% earlier in the week.
• Addresses holding between 1 million and 100 million SHIB have offloaded a combined 40 billion tokens since August 22.
• Smaller whales added 990 million SHIB during that same stretch.
• SHIB’s long-to-short ratio of 0.93 reflects bearish sentiment in the derivatives market.

Shiba Inu was trading around $0.00000516 on Wednesday, recovering almost 4% earlier in the week.

Despite the bounce, whale selling and softening derivatives data point to lingering caution among traders about the dog-themed memecoin’s near-term prospects.

SHIB remains above its 50-day exponential moving average, but rising selling pressure could heighten the chance of another drop.

Large SHIB whales cut positions

Santiment’s Supply Distribution data indicates a bearish turn among some of Shiba Inu’s biggest holders.

Wallets with between 1 million and 10 million SHIB and those with 10 million to 100 million tokens have together sold 40 billion SHIB since August 22.

The selling came after SHIB’s recent price gains and could mean larger holders are taking profits rather than betting on an immediate continuation of the rally.

Continued whale distribution could add extra supply to the market and make it harder for SHIB to keep its upward momentum.

While larger wallets trimmed their holdings, smaller whales moved the opposite way.

Addresses holding between 100,000 and 1 million SHIB accumulated roughly 990 million tokens over the same timeframe.

That difference suggests supply is shifting from large holders to smaller participants. However, the accumulation by smaller whales remains far below the 40 billion SHIB sold by the larger groups.

This gap implies that fresh demand may not be strong enough to fully soak up the tokens being distributed by bigger holders.

Shiba Inu’s derivatives market also points to cautious positioning. CoinGlass data showed SHIB’s long-to-short ratio at 0.93 on Wednesday.

A figure below 1 means short positions exceed long positions, indicating that more traders expect the token’s price to decline.

CryptoQuant’s data paints a similarly guarded picture. SHIB’s spot and futures markets are showing increased activity, and the futures market has recorded large whale orders following the recent price rise.

Other indicators remain neutral, leaving the overall picture mixed rather than clearly bearish.

SHIB bounces off the 50-day EMA

SHIB’s near 4% recovery came after it tested its 50-day EMA around $0.00000489. That moving average is now the token’s most important near-term support. The fact that it drew buyers during the recent pullback indicates demand still exists at lower levels.

If SHIB stays above this support and buying pressure picks up, the recovery could reach toward the 200-day EMA at $0.00000569.

A break above the 200-day EMA would strengthen the bullish case and could prompt traders to aim for higher resistance levels.

Shiba Inu’s momentum indicators reflect uncertainty among traders. The Relative Strength Index sits at 54 on the daily chart and is still climbing.

A reading above the neutral 50 level shows that bullish momentum is slowly improving.

However, the Moving Average Convergence Divergence indicator formed a bearish crossover on Wednesday. Expanding red histogram bars also suggest downward momentum persists.

The divergence between the RSI and MACD supports a cautious view as SHIB trades between its key moving averages.

If selling pressure intensifies, SHIB could drop back toward the 50-day EMA at $0.00000489.

A decisive daily close below that level would undermine the recovery and could expose the token to a deeper decline.

Conversely, continued support above the 50-day EMA could let buyers challenge the 200-day EMA at $0.00000569.

SHIB’s next major move will probably depend on whether retail demand can absorb ongoing whale selling and reverse the bearish positioning visible in the derivatives market.