Key Takeaways
What is the price trend of Shiba Inu now?
While SHIB has breached the lows of an 8-month range, another short-term range just below has formed, but the trend remained bearishly biased.
What do the whale token movements mean for SHIB?
The falling supply held by whales showed distribution from the largest holders and was another indication of steady selling pressure.
The October market correction saw Shiba Inu [SHIB] fall beneath an 8-month range formation.
The low of this range presented a level of resistance to the prices at the time of writing, a zone of supply that SHIB bulls have not been able to overcome.
The sentiment across the market, as well as within the memecoin sector, did not help matters either. Dogecoin [DOGE] threatened to succumb to the rising sell pressure and fall below a key local support zone.
This could drag Shiba Inu prices lower as well. The past 24 hours also saw a drop in the SHIB tokens burnt, although the past week’s numbers were up 139% compared to the week before.
AMBCrypto looked closer at Shiba Inu’s price movements and whale behavior on-chain to understand what the next trends could be.
Whale exits hurt the chances of a Shiba Inu recovery
The whale transaction count saw noticeable spikes just after the 10th of October, evidence that large holders were spooked.
The dormant circulation also saw huge upticks on the 19th and 26th of October, showing high token movement on those days.
These movements were also accompanied by rapid slides in the supply held by whales metric. Moreover, this metric has been slowly trending lower since early September, reflecting whales’ bearish outlook.
Together, the on-chain metrics revealed steady selling from whales and multiple above-average dormant circulation spikes, signals that usually arrive during bearish conditions.
Source: SHIB/USDT on TradingView
The bears were in control, but the past three weeks saw a short-term range formation between $0.0000093 and $0.0000113.
The mid-range level at $0.0000103 served as resistance during the recent price bounce, driving SHIB toward the range lows once more.
The MACD on the 4-hour chart reflected bearish momentum. Surprisingly, the OBV has made higher lows over the past three weeks, which was a spark of hope for the bulls.
Overall, however, the bias would be bearish, given the structure and higher timeframe momentum.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
