The Shiba Inu (SHIB) token has been experiencing a declining trend throughout 2024. From the beginning of the year, the token has seen a drop of about 12%, with a significant 18.1% loss recorded over the past month. Over the last week, SHIB’s price has decreased by nearly 6%, currently trading around the $0.0000123 mark.
Whale Transactions Exert Pressure on SHIB’s Price
The behavior of prominent addresses holding substantial SHIB quantities, often referred to as whales, has become a point of discussion. Data reveals these whales have been reducing their SHIB holdings. On July 21, these addresses collectively held 17.72 trillion SHIB, but by July 28, this figure fell to 17.63 trillion. During this period, SHIB’s price plummeted from $0.000014 to $0.000012.
As the selling pressure persisted, the total SHIB held by these addresses decreased further to 17.33 trillion, equivalent to approximately 300 billion SHIB or $3.7 million. A continued selling trend suggests the risk of a deeper correction in SHIB’s price.
Strong Support and Resistance Levels: Heatmap Analysis
According to Cost Basis Distribution Heatmap data by Glassnode, SHIB has heavily accumulated at a crucial support region. Approximately 19.99 trillion SHIB has clustered around the $0.00001212 level, recognized as a robust support zone. It is noted that this level has supported the price during its recent decline.
Conversely, the accumulation of 11.83 billion SHIB near the $0.00001269 mark forms a short-term resistance point. The token recently struggled to surpass this level. If large holders continue to sell, a break below the $0.00001211 support could trigger a new wave of selling, as indicated by heatmap analysis highlighting potential price pressures at these levels.
Price Chart and Future Potential Scenarios
The daily Shiba Inu price chart aligns with the heatmap data analysis. Currently, SHIB is trading at approximately $0.00001237, closely matching the heatmap’s support level. Should this support level breach, potential new low points might emerge at $0.00001100 and $0.00001000.
Alternatively, a decisive upward break above the $0.00001271 level could lessen the downward pressure. However, such movement would require whales to re-enter the market, which currently shows no signs of happening.
Analysts suggest that SHIB may continue to fluctuate between key support and resistance levels shortly. The conduct of large investors is highlighted as crucial in determining both current and future price movements.
