801 Billion $SHIB Sold in 24 Hours: What Are Whales Seeing Ahead

Whale Shiba Inu (SHIB) has caused a significant sell-off, dumping 801.04 billion SHIB tokens within 24 hours. This sudden sell-off coincides with extreme volatility in the market, causing investors to panic. As the crypto market in general faces a collapse, Shiba Inu has seen increased pressure from large holders exiting their positions. Whale Shiba Inu Causes Large Token Sell-off Large holders of Shiba Inu have increased outflows from the token by 343.18% in a single day, indicating a widespread panic sell-off. Market confidence has decreased as the token supply has changed from 180.76 billion to 801.04 billion. The sharp increase suggests a stronger trend towards more aggressive selling activities rather than buying activities.

Net cash flows of large holders move in a negative direction because inflow activities are less dominant than outflow activities. Current net cash flow shows -256.9 billion cash outflows, indicating that buyers have completely disappeared from the market. The whales’ token purchase figures reflect significant inequality in the market as they have collected only 544 billion tokens. Large investors appear uncertain as they choose to liquidate their positions rather than hold capital to avoid potential losses. Market experts strongly believe that price declines often initiate such moves through large trading volumes. Price pressure increases after significant holders exit the market, thus making other investors more cautious. SHIB Price Affected by Sell-Off and Technical Resistance After the whales sold off, the price of Shiba Inu dropped from $0.00001173 to $0.00001125 on the daily chart. This decline has disrupted the brief recovery trend despite SHIB having increased by 8.45% the day before. As of now, SHIB is trading at $0.00001131, maintaining weak momentum. Every phase of the exponential moving average acts as a barrier against the downtrend of the meme coin. SHIB continues to trade below the 20, 50, 100, and 200-day EMA, showing little strength to reverse. The EMA has turned into a resistance wall, preventing SHIB from recovering above its positions.

The relative strength index stands at 35.50 on the technical front, signaling that SHIB is approaching the oversold level. The MACD indicator line continues to follow the signal line, indicating that a red signal is in progress. Small rallies during the day that do not relieve bullish pressure are shown by these bearish momentum indicators. The Spot Market and the Derivatives Market Reflect Continuous Downward Price Pressure The derivatives market data shows a continuous negative funding rate, supporting short positions on Shiba Inu. The market continues to force traders to pay to hold short positions as it indicates a price decrease prediction. Occasionally during this period, there are short phases of green funding, but the overall funding trend remains negative.

Natural market volatility through the spot market has maintained stable negative patterns from November to April 2022. The net outflow of funds was significantly greater than the inflow, further increasing sell pressure across the SHIB market. Market participants continued to close their positions rather than increase investment in Shiba Inu.

Despite a small increase of 3.38% during the day to $0.00001102, SHIB still lacks the momentum to break through the descending resistance level. These price increases stem from traders closing their short positions rather than investors showing long-term support for the market. The price of SHIB shows high volatility and does not indicate an upcoming trend change from buyers.