- SHIB dropped over 7.5% in 24 hours, testing critical support near $0.00001240 with increased market volatility.
- CoinGlass data showed $942K in short positions near $0.00001306, far outweighing long liquidations.
With huge volatility, Shiba Inu [SHIB], the popular memecoin, has been on the verge of crashing by 20%, as its price action flashes a bearish signal.
Despite this bearish outlook, whales’ participation in the memecoin skyrocketed, as revealed by the on-chain analytics tool IntoTheBlock.
Whales participation skyrockests
According to IntoTheBlock, SHIB transaction counts in the $100K–$1M range jumped 175.86% in the past 24 hours. The $10K–$100K bracket also saw a 147.79% spike.
In contrast, smaller transactions, linked to retailers, tumbled. The $10–$100 and $100–$1K bands fell 69.62% and 21.10%, respectively.
Clearly, retail is exiting, while whales are buying the dip.
This surge in whale transactions, alongside the significant decline in retail transactions, comes at a time when the memecoin was sinking.
It indicated that whales are taking advantage of the price dip, while retailers appear to be panic-selling.
At press time, SHIB was trading near $0.0000124 and had registered a price decline of over 7.50% in the past 24 hours.
During the same period, traders and investors found themselves fearful and avoided participation, resulting in a 10% drop in the recorded trading volume.
Shiba Inu price action and technical analysis
AMBCrypto’s analysis suggests that if SHIB closes a daily candle below $0.00001240, it could continue to decline, potentially dropping 18% in the coming days.
On the other hand, if the SHIB memecoin sustains itself above the $0.00001240 level, a price reversal is also possible, and the asset may see a price jump of 18%, repeating its earlier pattern and history.
Amid the market uncertainty, SHIB has fallen below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset is in a downtrend.
Traders’ eyes on short positions
Meanwhile, CoinGlass data showed traders are stacking short positions aggressively.
Around $0.00001306, cumulative short liquidations now stand at $942K, compared to just $612K in long liquidations.
This imbalance shows strong downside bias. If the price slips further, short pressure could cascade into more selling.
Given the current market structure and on-chain metrics, the bearish outlook seems to be on the verge of execution.