- SHIB’s price dipped by 28% to a bullish flag support level in just 3 days.
- Large transactions fell by over 53% too
At the time of writing, Shiba Inu (SHIB) found itself at a significant price level as the memecoin seemed to be testing a key support level at $0.00001368. What does this mean? Well, recent price action and on-chain metrics might be painting a mixed picture for SHIB’s short-term outlook. Hence, it’s worth taking a look at what’s next for SHIB.
Since 5 March, SHIB had been consolidating within a bullish flag pattern. This technical formation often precedes an upward breakout.
However, the altcoin’s latest 28% drop over just three days to around $0.000014 brought SHIB to a crucial test of the flag’s lower support level.
Source: DOGE/USD, TradingView
SHIB whales taking a breather?
The number of large transactions on SHIB’s network dipped by over 53.3% recently too. This significant reduction can be interpreted as a sign that whale activity may have cooled off.
This fall in large-scale investors could lead to lower volatility in the short term. However, it may also indicate a lack of strong directional bias from major players, leaving SHIB more open to broader market trends.
Source: IntoTheBlock
Majority still in the green
Despite the aforementioned dip, however, a significant 61.63% of SHIB addresses remain in profit, as indicated by IntoTheBlock’s data. Based on this statistic, a majority of the holders are still sitting on unrealized gains. The psychological implications here are that this could provide some protection against panic selling, as many holders are not yet facing losses.
However, it also means there is still room for potential profit-taking if sentiment turns bearish.
Source: IntoTheBlock
What next for SHIB?
The convergence of technical and on-chain metrics leaves SHIB in an indecisive position. The bullish flag pattern offers hope for a potential rebound. However, the sharp decline in whale activity and the large percentage of addresses still in profit indicate market uncertainty.
In the near term, all eyes will be on whether SHIB can hold its latest support level. A convincing reversal could fuel bullish momentum and validate the flag pattern.
Alternatively, a breakdown might lead to further dips, potentially targeting the next major support zones.
