The price of Shiba Inu retreated to the important support level at $0.0000145 as sentiment in the crypto market faded and whales began to sell. On Wednesday, it was trading at $0.00001456, down almost 20% from its highest point this year.
Shiba Inu Price at Risk as Whales Sell
There are signs that Shiba Inu whales are starting to capitulate after the token dropped sharply from its highest point in November last year.
Santiment data shows that the top three cohorts of whales have continued to sell their holdings. Addresses holding between 1 million and 10 million tokens now own 2.03 trillion tokens, down from 2.07 trillion in February.
Similarly, addresses holding between 10 million and 100 million tokens hold 9.36 trillion tokens, down from 9.6 trillion in January. Those holding between 100 million and 1 billion coins have also dropped to 18.06 trillion.
The ongoing token sell-off by whales is a sign of capitulation, as the value has dropped by over 56% from its highest point in November. This likely happened as some of these investors shifted their assets from Shiba Inu to Solana meme coins like Fartcoin, Dogwifhat, and Pudgy Penguins.
On a positive note, a sharp decline in whale holdings often leads to a rebound, as some investors begin buying the dip. The improving Shibarium ecosystem and Ethereum’s rebound are likely catalysts for this.
READ MORE: Shiba Inu Price Prediction: Can SHIB Turn $10K Into $1M by 2030?
SHIB Price Technical Analysis
The daily chart presents mixed signals for Shiba Inu Coin. On the positive side, the token has already soared from a low of $0.00001028 on April 9 to $0.00001457 today. It has moved slightly above the 50-day Exponential Moving Average, which has provided it with robust support.
However, the risk is that SHIB is slowly forming a rising wedge pattern. This pattern comprises two ascending and converging trendlines, with a bearish breakdown happening when they near their confluence.
Similarly, top oscillators like the Relative Strength Index (RSI) and the MACD have all drifted downwards.
Therefore, the Shiba Inu price forecast is neutral for now. The risk is that it could lose support at the 50-day moving average and possibly fall to the year-to-date low of $0.00001028, a 30% decrease from the current level.
On the positive side, a move above the upper boundary of the wedge would indicate that bulls have prevailed, potentially driving the price to $0.000025, a 70% increase from the current level.
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