Key takeaways
What is the Shiba Inu price trending now?
While SHIB broke through the lows of an 8-month range, another short-term range formed just below, but the trend remained biased to the downside.
What do whale token movements mean for SHIB?
The drop in supply held by whales showed the distribution of the largest holders and was another indication of continued selling pressure.
October market correction saw Shiba Inu [SHIB] fall below an 8-month range formation.
The low of this range presented a level of price resistance at the time of writing, a supply zone that SHIB bulls have been unable to overcome.
Sentiment across the market, as well as within the memecoin sector, did not help either. Dogecoin [DOGE] threatened to succumb to increasing selling pressure and fall below a key local support zone.
This could also drive down Shiba Inu prices. In the last 24 hours there was also a drop in the Burned SHIB tokensalthough last week’s figures were up 139% compared to the previous week.
AMBCrypto took a closer look at Shiba Inu price movements and on-chain whale behavior to understand what the next trends could be.
Whale departures harm Shiba Inu’s chances of recovery
The whale transaction count saw notable spikes just after October 10, proof that large holders were scared.
Inactive circulation also experienced large increases on October 19 and 26, showing high symbolic movement on those days.
These moves were also accompanied by rapid declines in the metric supply of whales. Furthermore, this metric has been slowly declining since early September, reflecting the whales’ bearish outlook.
Collectively, the on-chain metrics revealed consistent whale selling and multiple above-average inactive circulation spikes, signs that typically arrive during bearish conditions.
Source: SHIB/USDT on TradingView
The bears were in control, but the last three weeks saw a short-term range formation between $0.0000093 and $0.0000113.
The $0.0000103 midlevel served as resistance during the recent price bounce, driving SHIB towards the range lows once again.
The MACD on the 4-hour chart reflected bearish momentum. Surprisingly, OBV has made higher lows in the last three weeks, which was a spark of hope for the bulls.
However, overall, the bias would be bearish, given the structure and higher temporal momentum.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
