Key Insights
- Shiba Inu avoided losing another zero by holding firm above $0.00001 after the recent sell-off.
- Whale holdings surged from 21 billion to nearly 92 billion SHIB, hinting at continued selling pressure.
- A descending triangle pattern on charts signals that further declines toward $0.000006 remain possible.
Shiba Inu (SHIB) has narrowly escaped slipping below the critical $0.00001 mark after last week’s steep decline. The meme cryptocurrency briefly dropped under this level during the October 10 sell-off but quickly rebounded. By the following week, SHIB managed to stabilize near $0.0000102, giving traders a brief moment of relief after a turbulent stretch.
Despite the bounce, SHIB remains far from its former levels. The token’s market capitalization now sits around $6.9 billion, about 70% lower than in December. This steep decline underscores the ongoing weakness in investor confidence. While prices have recovered modestly, broader market sentiment continues to lean negative as selling pressure intensifies.
Whale Wallets Increase Holdings as Selling Grows
Large investors, often called whales, have continued moving massive volumes of SHIB. At the beginning of the week, whale wallets held around 21 billion SHIB, but this figure has since surged to nearly 92 billion. The increase indicates that coins are being shifted, possibly in preparation for further sell-offs. Moreover, exchange balances have risen from 275 trillion tokens on Sunday to 276 trillion, suggesting that more tokens are being positioned for potential liquidation.
Source: TradingView
Price charts reveal a worrying pattern for traders. A descending triangle formation, with support at $0.00001052, has repeatedly appeared since April. This level was tested again during the October drop, signaling a likely continuation of downward momentum. Historically, such patterns often precede sharper declines. If this setup plays out, analysts warn that SHIB could revisit the $0.000006 range.
Temporary Stability Amid Broader Market Uncertainty
Although short-term buyers managed to defend the $0.00001 line, the broader picture remains unfavorable. While sales persist, on-chain activity has declined, and the technical outlook stays weak. SHIB’s recent resilience may offer brief stability, but without a shift in volume or sentiment, the recovery could fade quickly as traders brace for another potential downturn.
