The cryptocurrency market remains under pressure, and Shiba Inu (SHIB)

The cryptocurrency market remains under pressure, and Shiba Inu (SHIB), one of the most popular meme coins, is feeling the heat.

Shiba Inu (SHIB) has come under immense pressure in recent times, especially as the cryptocurrency market navigates uncharted waters. Among the most popular meme coins, SHIB has seen a nearly 10% decline over the past week, now trading at around $0.0000125. This downtrend has been exacerbated by significant whale sell-offs, which might be putting a strain on the coin’s market confidence.

As reported by IntoTheBlock, SHIB’s large holders’ netflow has dropped by a staggering 123% in the past week. This coincides with the meme coin’s 8% price dip, suggesting that major investors are offloading their holdings at an accelerated pace.

Large holders are defined as wallets that hold more than 0.1% of SHIB’s circulating supply. The netflow metric keeps track of whether these investors are accumulating (positive netflow) or distributing (negative netflow) their tokens. The recent sharp decline in netflow suggests that whales are exiting their positions, increasing the circulating supply of SHIB and putting additional downward pressure on its price.

This trend can also have a significant impact on retail investors. When large holders sell off their assets, it can trigger panic among smaller traders, leading to more selling pressure and exacerbating SHIB’s downward momentum. If the current trend continues, SHIB may struggle to find strong support in the near term.

Further highlighting the potential for more losses, SHIB’s Relative Strength Index (RSI) is trending downward at 35.34. This momentum indicator is commonly used to assess whether an asset is overbought or oversold. Typically, an RSI reading above 70 suggests that an asset is overbought and may be due for a correction, while a reading below 30 indicates an oversold condition and a possible rebound.

At 35.34, SHIB’s RSI suggests that while it is approaching oversold territory, it has not yet fully entered it. This indicates that buying pressure remains weak, leaving room for further declines unless demand for SHIB increases.

Another concerning technical pattern is the descending trend line SHIB has been trading below since December 8. This trend line forms when an asset consistently makes lower highs over time, reflecting sustained selling pressure and a bearish market structure.

For SHIB to break out of this bearish trend, it must reclaim and hold above key resistance levels. Until then, downward pressure will likely persist, keeping SHIB in a precarious position.

Given the current market conditions, analysts at Benzinga have identified key price levels that SHIB traders should monitor:

As meme coin traders navigate the volatile landscape, keeping an eye on whale activity and technical signals will be crucial in determining whether SHIB can stage a comeback or continue its descent.