1,600% Shiba Inu (SHIB) Implosion: Here’s What Happened

There is a major problem with Shiba Inu. In recent weeks, the meme coin has seen a sharp decline in price action and on-chain metrics, which has led to a sharp increase in large holder outflows of 1,600%. Not merely a statistical outlier, this number is a warning sign. First, let’s review the fundamentals.

SHIB is currently just above $0.0000119 on the price chart after falling below important support levels at $0.000013 and $0.000012. Given the rejection of all three major moving averages (the 50, 100 and 200 EMA), the trend is still very bearish despite this obvious breakdown from the recent consolidation range.

As it approaches oversold territory, the RSI is rapidly declining, suggesting that there is little bullish resistance and more selling pressure. But the on-chain behavior is the most harmful element. Whale accumulation has completely stopped as evidenced by the 98.6% collapse in large holder inflows over the past seven days, according to IntoTheBlock data. However, in just one week, outflows from major holders have skyrocketed by 1,598%.

The market’s aggressive selling pressure usually precedes or coincides with this mass whale exit, which usually signifies a significant loss of confidence. Big money is driving SHIB crazy, to put it simply. The fact that the price is not reacting to any bottoming behavior is even worse. On red days the volume stays high, and there is no indication of a capitulation bounce.

There is an exodus going on here, not just a dip. Short-term upside potential is currently very constrained. There is a chance that SHIB will decline toward the psychological $0.000010 zone unless it can recover $0.0000135 and show consistent buyer strength. This is not the time for investors to buy the dip heedlessly.

Now is the time to reconsider if a significant recovery is even supported by the current market structure. SHIB is on thin ice until change occurs in whale behavior or general sentiment.

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