Shiba Inu is once again making headlines, but not due to a price rally or market recovery. This time, it’s the alarming surge in whale activity that has captured attention across the crypto space.
According to recent data, large wallet inflows into SHIB have spiked by over 1,010 percent within one week. This sharp rise comes while the asset’s price continues to fall steadily without signs of recovery.
SHIB is currently trading at a price of about 0.00001167, which is about 25 percent lower than when it peaked in that area this year. Nonetheless, the huge amounts of capital flowing into massive wallets containing SHIB raise concerns regarding the intentions of their investors.
Market indications are still unanimously bearish, as SHIB has fallen under its 50, 100, and 200-day exponential moving averages, indicating further pressure.
In addition, the volume is contracting, implying deteriorating interest amongst retail participants. The RSI levels are also not increasing, which means that the buying momentum is not participating.
Source: Tradingview
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Spike in Whale Inflows Sparks Uncertainty Over Potential Market Dump
This disconnect between inflows and market price is creating concern among traders and analysts. In previous cycles, such movements were often linked to accumulation before a rally or preparation for distribution.
Since no positive technical signs were observed in the marketplace, the chances of a strategic sell-off started to become an area of focus. When these inflows are internal transfers by whales, coordinated withdrawals may result, creating further pressure on price.
Furthermore, a lack of liquidity further risks prompting prices to move downwards. Any dumping by large holders can trigger a panic sell on the smaller wallets.
Confidence in SHIB is already low, and sudden moves from top wallets may trigger a broader reaction. The investors will closely monitor any such movement to determine whether these suspicions are confirmable.
As of now, SHIB is held hostage in a technical decline. As the inflows increase and the price decreases, the market mood is perched between a rock and a hard place.
SHIB’s market faces a risky phase as whale inflows rise sharply amid falling prices. Unless the trend shifts, the token could be vulnerable to further selling pressure from major holders.
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