Shiba Inu’s market activity has intensified, as significant selling pressure emerges from both whales and retail investors amid rising bearish sentiment.
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In a startling move, Shiba Inu faced heavy sell pressure as whales offloaded 359 billion tokens in a single day.
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SHIB saw broad-based selling as all market cohorts rushed to exit positions.
As Shiba Inu [SHIB] struggles, the memecoin is facing strong selling pressure. Amidst this, it seems large holders and retailers have become impatient, leading to further sell-off to mitigate losses.
According to IntoTheBlock, whales are aggressively selling Shiba Inu, with whale outflows surging by 229% in a single day, increasing from 109 billion to 359 billion SHIB. A significant indicator of this trend is the decrease in Large Holders’ Netflow, which dropped to a monthly low of 4 billion SHIB, indicating aggressive distribution.
Source: IntoTheBlock
Such a massive outflow from large holders indicates increased selling activity from the cohort, reflecting strong bearish sentiments. Typically, when whales engage in extreme offloading, it signals a lack of confidence in the market, suggesting an expectation of declining prices. Notably, these selling actions are not limited to whales; retail investors are also participating in the sell-off.
Sell-side pressure spreads across all cohorts
Conversely, it appears that all market participants are following suit and also engaging in sales. For example, Shiba Inu’s Buy/Sell Volume indicates a negative order imbalance of 134.15 billion tokens overall, with a staggering total of 1.2 trillion tokens sold. This negative imbalance suggests a dominant presence of sellers in the market, with a higher volume of sell orders executed.
Source: Coinalyze
Additionally, Shiba Inu’s Exchange Flow balance has turned positive, currently holding at 5.3 million SHIB. A positive flow balance indicates more tokens are being deposited into exchanges than withdrawn, which typically reflects selling, as holders are transferring tokens to sell.
Source: Santiment
Netflows confirm sustained bearish pressure
This bearish trend is further confirmed by the positive Exchange Netflow that has persisted over the past two days. On May 2nd, Shiba Inu (SHIB) recorded a positive Netflow of 231 billion; it has since decreased to 21 billion SHIB tokens. This indicates a net flow of 252 billion tokens over two days, pointing to significant exchange inflow.
Historically, trends of rising exchange inflow coupled with outsized selling pressure have preceded sharp declines in price. This indicates that the supply of tokens is currently outweighing demand, setting up potential inflationary effects on the price. If this selling continues, SHIB may experience further corrections in the near term.
Any impact on Shiba Inu?
The elevated selling activity has adversely affected Shiba Inu’s price trajectory. Currently, SHIB is trading at $0.00001324, reflecting an 8.4% decline over the past week and a 1.84% drop in the last 24 hours. This ongoing decline underscores strong bearish sentiment in the market, positioning the memecoin at a critical juncture. Should selling pressures persist, SHIB could potentially dip to $0.00001274. Conversely, if buyers enter the market and challenge selling trends, it might reclaim $0.00001397, with the critical level for a bullish outlook being a daily close above $0.00001376.
Conclusion
The recent surge in selling pressure among Shiba Inu holders—both whales and retail investors—highlights a key bearish sentiment in the market. The combination of significant outflows, a negative order imbalance, and increased exchange deposits raises concerns over the potential for deeper price corrections without a counterbalancing buyer response. As the market evolves, investors should closely monitor these indicators to gauge future movements.
