Shiba Inu has been experiencing a sharp decline, as shown by the market being shaken by an astounding 7.5 trillion outflow of tokens. This enormous token movement indicates significant changes in investor sentiment, which will increase selling pressure and cause a significant decline in price.
According to the latest on-chain data, the seven-day outflow surged by 699.84%, indicating that major holders are moving large amounts of SHIB. While this suggests potential redistribution or sell-offs, the 455.78% increase in large holder inflows could balance the outflow out, practically nullifying the effect from the major outflow.
SHIB/USDT Chart by TradingView
Whales profiting: It is possible that major holders who amassed SHIB during the bull run are selling off their holdings.
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Panic-selling: The steep decline may have been caused by retail investors who saw important support levels break.
Changes in liquidity: It is possible that some SHIB investors are switching to other assets with better immediate prospects. SHIB is currently exhibiting indications of a possible short-term recovery by trying to stabilize close to $0.000016.
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The recent failure of several support levels, including the 200 EMA ($0.000020), indicates that there may still be more downside risks, though. SHIB is likely to drop another leg to $0.000013 if it is unable to hold above $0.000016. Investors are concerned that a decline of this magnitude might push it even lower, possibly testing $0.00010 and adding another zero to its price.
Regaining $0.000019 and surpassing the $0.000020 resistance are necessary for SHIB to regain its bullish structure and make a significant recovery. SHIB may move toward $0.000022 and higher if it pushes above this level. Although the SHIB outflow of 7.5 trillion is a serious red flag, there is still hope for the asset to rebound. SHIB may resume its upward trajectory if bulls regain control above $0.000019. A retest of lower supports is unavoidable otherwise.
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