Shiba Inu (SHIB) has recently faced significant downward pressure, with its price action and on-chain whale behavior painting a predominantly bearish picture. A confluence of factors, including key technical breakdowns and a steady distribution from large holders, suggests a challenging period for the popular memecoin, despite occasional glimmers of bullish hope.
Shiba Inu's Prevailing Bearish Price Trend
The SHIB token has decisively fallen below an 8-month range, establishing its former low as a new resistance level that bulls have struggled to overcome. While a new, narrower short-term range has formed between $0.0000093 and $0.0000113, the overall trend remains bearish. The mid-range level has acted as strong resistance, pushing SHIB back towards its lows. Adding to the pressure, the broader market sentiment, particularly within the memecoin sector, has been weak, with even Dogecoin facing significant sell pressure that could further drag SHIB prices down. Technical indicators, such as the MACD on the 4-hour chart, reinforce this bearish momentum, indicating that sellers are firmly in control.
Whale Activity Signals Continued Selling Pressure
A closer look at on-chain metrics reveals that large holders, or "whales," have been actively distributing their SHIB tokens, contributing significantly to the selling pressure. Noticeable spikes in whale transaction counts and dormant circulation immediately following October 10th indicate that major holders were liquidating their positions. This sustained distribution is further evidenced by a continuous decline in the supply held by whales since early September, reflecting a long-term bearish outlook from these significant market participants. While the On-Balance Volume (OBV) has shown surprising higher lows over the past three weeks—a potential spark of hope for bulls—the overwhelming evidence from price structure, higher timeframe momentum, and persistent whale exits suggests that the overall bias for Shiba Inu remains firmly bearish.
