The Shiba Inu price has remained in a tight range over the past few months, underperforming most meme coins. SHIB was trading at $0.00001330 on Thursday, down by 60% from its highest point in December last year. So, is Shiba Inu a good coin to buy as whales sell?
SHIB is at Risk as Whales Sell
On-chain data shows that Shiba Inu whales have continued selling the coin this month, despite the crypto market rally.
The chart below indicates that SHIB holders with between 1 million and 1 billion tokens have been reducing their holdings over the past few months. Those holding 1 million and 10 million tokens now hold about 2.03 trillion tokens, down from 2.05 trillion in March.
Similarly, those holding between 10 million and 100 million tokens now have 9.35 trillion coins, down from a high of 9.41 trillion in March. Those with between 100 million and 1 trillion tokens now hold 17.96 trillion coins.
The ongoing whale transactions mean that these investors expect the price to remain under pressure this year. They are also selling it, possibly as they rotate to other fast-growing meme coins like SPX6900 and Fartcoin.
More on-chain data reveals that the supply of SHIB coins on exchanges has risen this month. There are now 141.12 trillion coins on exchanges, up from 140.7 trillion earlier this month.
The rising exchange volume, coupled with the whale dumping, and a negative network realized profit/loss, is a sign that these investors are capitulating and opting to take a loss.
READ MORE: Shiba Inu Price Prediction: Can SHIB Turn $10K Into $1M by 2030?
Shiba Inu price is also facing other challenges. Shibarium has a total value locked (TVL) of just $3 million, more than 2 years after its launch. In contrast, recently launched chains like Unichain and Sonic have millions of dollars in volume.
Shiba Inu Price is Hanging on a Thread
The three-day chart shows that the SHIB price is trading at a crucial support level. Its current price of $0.000013 is a few points above the ascending trendline that connects the lowest swings since September 2023. It has failed to move below this level several times since that time.
Shiba Inu price has also formed a bearish flag pattern, a popular continuation signal. This pattern consists of a vertical line and a design resembling a hoisted flag.
SHIB is also much lower than the 50-day and 100-day moving averages, while the Relative Strength Index (RSI) moved below the zero line. Therefore, the token is likely to experience a bearish breakdown in the coming weeks. Such a move will have it drop to the support level at $0.000010.
READ MORE: Just $145 Million SHIB Coins Show Why Shiba Inu Price is in Trouble
