Shiba Inu Price Crashes 32%; SHIB Large HODLer Outflow Sees 210% Spike, What’s Next?

Key Takeaways:

• Bearish Trend in SHIB Price: Shiba Inu displayed strength from June to July 2023 but entered a bearish phase in mid-August, witnessing a more than 34% price decline over the last month. The breach of both the 50-day and 200-day exponential moving averages signaled a bearish sentiment.
• Technical Hurdles for Recovery: The widening gap between SHIB’s 50-day and 200-day exponential moving averages, including a death cross in May 2023, presents a significant challenge for bulls attempting a price recovery. Overcoming the crucial level of $0.000009 is seen as a key hurdle for SHIB’s price resurgence.
• Large Holders’ Activity: Notable data from IntoTheBlock revealed a substantial 210% increase in SHIB outflows from major whale wallets in the past 24 hours, amounting to 425.7 billion SHIB tokens, nearly $3 million in value. The intriguing aspect is that these whale wallets predominantly belong to centralized exchanges and trading platforms, potentially suggesting increased buying activity rather than selling pressure.

Shiba Inu Technical Overview

SHIB/USDT | Source: TradingView

• Shiba Inu showed strength from June to July 2023 but entered a bearish phase in mid-August, as evidenced by the blue trendline.
• Over the last month, SHIB’s price plummeted by more than 34%, breaching both the 50-day and 200-day exponential moving averages.
• Additionally, SHIB’s 50-day and 200-day exponential moving averages saw a death cross earlier in May 2023 and since then the gap between the two has been widening at a very strong pace, which would make it significantly more difficult for the bulls to stage a recovery.
• In terms of technical analysis, the immediate challenge for SHIB’s price recovery is overcoming the critical level of $0.000009, as indicated by the Fibonacci pivot points on the chart.
• However, the current outlook appears bearish as SHIB is trading below the support level at $0.0000072 (S1). If bearish momentum persists, the next plausible target could be around $0.0000063 (S2).

Read More: Shiba Inu Price Prediction

Shiba Inu On-chain Overview

Large Holders Outflow

Large Holders Outflow | Source: IntoTheBlock / U.Today

Data sourced from IntoTheBlock indicates a noteworthy surge of 210% in SHIB outflows from substantial whale wallets within the last 24 hours. This migration of Shiba Inu tokens from these prominent wallets surged by 216.45 billion SHIB, marking a significant 210% uptick compared to the previous day. In aggregate, a substantial sum of 425.7 billion Shiba Inu tokens exited these wallets during this observed timeframe, translating to an approximate value of nearly $3 million.

Adding an intriguing layer to this narrative is the identity of these major SHIB holders, who are primarily centralized exchanges and trading platforms. Among the five most substantial known SHIB addresses are a burn address, Crypto.com exchange, two addresses linked to Binance, and one under the ownership of Robinhood.

Traditionally, the movement of assets out of significant wallets is often interpreted as a bearish signal, indicating a prevalence of selling pressure. However, it’s noteworthy that these primary SHIB holders constitute exchanges and platforms. Consequently, their decision to move tokens out of their wallets might signify heightened buying activity, presenting a positive outlook for the token.

Additional Read: Top Price Predictions BTC, ETH, XRP, SHIB, SOL

Conclusion

Shiba Inu has been grappling with a bearish trend in its price, accentuated by technical challenges. However, recent outflows from major whale wallets, predominantly owned by exchanges and platforms, offer an interesting twist. While such movements are often perceived as bearish, in this context, they might indicate a surge in buying activity, potentially contributing to a more positive outlook for SHIB. Traders and investors should closely monitor both technical indicators and large holders’ activity to gauge the crypto’s future trajectory.

Values as of September 15, 2023.