Shiba Inu faces fifth consecutive week of declines as market sentiment turns risk-averse
On-chain metrics show whales reducing SHIB holdings at accelerated pace
Technical setup indicates potential test of key support levels in coming sessions
The How much is 0 ETH worth in dollars?meme token sector continues to underperform broader crypto markets, with Shiba Inu (SHIB) extending losses through Friday's trading session. Market participants appear increasingly cautious amid geopolitical uncertainties, with blockchain analytics revealing substantial redistribution of SHIB tokens from larger to smaller wallets.
Whale Activity Signals Shifting Sentiment
Network activity metrics paint a concerning picture for SHIB enthusiasts. The Realized Profit/Loss indicator recorded its most dramatic negative swing since March 2024, suggesting holders are increasingly willing to exit positions at a loss rather than wait for recovery. This behavioral shift typically precedes extended periods of price consolidation or further downside.
Supply distribution patterns reveal particularly noteworthy movements among mid-tier holders. Wallets containing between 100,000-1 million SHIB (representing approximately $1-10 million at current valuations) have shown the most pronounced reduction in balances. This cohort often includes sophisticated traders who tend to be early movers during trend reversals.
Technical Perspective: Key Levels to Watch
From a chart perspective, SHIB's recent rejection at the 50-day EMA confirms the persistence of bearish momentum. The token now approaches a critical juncture at the $0.000011 support level, which previously served as both resistance and support during April's trading range.
Momentum indicators currently favor sellers across all timeframes. The daily RSI's downward trajectory toward oversold territory suggests no immediate signs of exhaustion in the current move. Meanwhile, the MACD's bearish crossover and expanding histogram bars reinforce the negative bias.
Weekly charts reveal additional concerning developments. Should current levels fail to hold, the next meaningful support zone emerges near the psychological $0.000010 threshold. This area coincides with the token's April lows and would represent a 25% decline from recent highs.
Conversely, any meaningful recovery would need to contend with multiple overhead resistances. The $0.000013 level stands out as particularly significant, having capped several rally attempts throughout June. A decisive break above this zone could signal the potential for more sustained upside.
Market participants should monitor trading volume patterns closely in coming sessions. Increasing volume on downward moves would suggest strengthening conviction among sellers, while weak volume rebounds might indicate merely technical retracements rather than genuine trend reversals.
