Shiba Inu price has already dropped 30% from its May high, and ongoing whale activity suggests further sell-off may be ahead this month.
Shiba Inu (SHIB) has fallen from its May peak of $0.00001757 to $0.00001260, currently hovering at its lowest level since May 7.
On-chain data reveals that whales have continued offloading their SHIB holdings this month—a sign that larger investors expect more downside.
Santiment data shows that holders with between 100 million and 1 billion tokens hold 17.96 trillion tokens down from 19.5 trillion in the same period last year.
Similarly, holders with between 1 million and 100 million tokens have also been selling aggressively. As a result, the percentage of stablecoin supply held by SHIB whales has dropped to 52.4%, down from this month’s peak of 56%.
Additional data shows many of these investors are capitulating and selling at a loss. The closely-watched network realized profit/loss (NRPL) metric has dropped to negative 1.04 million and has remained in the red for several consecutive days.
Shiba Inu whale activity | Source: Santiment
Whales may be exiting due to weakening fundamentals. Notably, Shiba Inu’s burn rate has declined significantly in recent weeks, negatively impacting sentiment.
Data from ShibariumScan also shows a sharp drop in on-chain activity. The number of active accounts has declined from 1,045 on June 6 to just 172 today, while transaction fees have fallen from 1,459 BONE on June 4 to 336 BONE on June 8. Falling activity on Shibarium is viewed as bearish, as fewer transactions are being converted into SHIB and burned.
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Shiba Inu price technical analysis
SHIB price chart | Source: crypto.news
The daily chart shows that SHIB peaked at $0.00001757 on May 12 before plunging to $0.00001250.
Price action has formed a series of lower lows and lower highs, creating a descending channel pattern.
SHIB has also moved below the 50-day and 100-day moving averages, as well as the key pivot and reversal level of the Murrey Math Lines.
The descending channel suggests the potential for further downside, with key support at $0.00001043, its lowest level in April, representing a 17.80% decline from current levels. A move above the 50-day moving average at $0.00001361 would invalidate the bearish outlook.
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