Shiba Inu is reeling from a sharp price crash, with on-chain data pointing to massive selling by large holders (whales) as the culprit. Over the past week, SHIB’s market value has dropped significantly alongside the rest of the industry, erasing recent gains and testing key support levels. The exodus of Shiba Inu whales has not only accelerated the token’s decline but also rattled retail traders and opened risks of more downside moves.
Shiba Inu Whales Drive SHIB Dump
Blockchain analytics data from IntoTheBlock show that whale wallets have been offloading SHIB at an alarming rate in recent days. The Large Holder Netflow, an indicator tracking the net change in whale holdings, has plunged by a negative 736.46% in the past seven days and is down by negative 125.06% over the past 30 days. In simple terms, this means whales sent out far more SHIB than they brought in, a clear sign of heavy selling.
For context, the image below shows the Large Holder Netflow from IntoTheBlock. The blue tracker shows the steep plunge into negative netflow in early March, indicating whales offloaded large amounts of SHIB as the price (black) dipped. Such negative netflows indicate that major holders are actively reducing their positions, dumping billions of SHIB onto the market and increasing selling pressure.
Furthermore, addresses holding SHIB tokens worth between $1 million and $10 million have seen their balance decline by 31.31% in the past 24 hours, while those holding tokens worth over $10 million have seen their balance drop by 27.99%.
What Does This Mean For Shiba Inu Price?
The market has quickly reacted to the latest wave of whale dumping. Social sentiment around Shiba Inu has turned bearish, with fear creeping in. The Shiba Inu Fear & Greed Index dropped into “Fear” territory (around 33/100) as investors grow anxious about the prolonged downtrend.
Historically, the Shiba Inu price tends to falter when whales unload en masse. In early February, SHIB’s large-holder netflows swung dramatically from a 3.5 trillion SHIB inflow to a -792.8 billion SHIB outflow within a day, causing the price to bottom at $0.00001286.
Interestingly, Shiba Inu has now even declined below this level after falling roughly by 11% as the big holders hit the sell button. At the time of writing, Shiba Inu is opening the new week around $0.0000125 per token, down from the mid-$0.000014s early last week. This drop places the Shiba Inu price trading around its lowest levels in over a year, and the downtrend could deepen if whale selling continues unabated.
Technical indicators paint a cautious picture of weakening momentum. SHIB’s daily Relative Strength Index (RSI) is now hovering in the mid-30s. This suggests the memecoin coin is approaching an extreme to the oversold levels, but not quite there yet, and bears are still in control.
Featured image from Adobe Stock, chart from Tradingview.com
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