Shiba Inu (SHIB) is trading cautiously this week as whale activity on-chain shows signs of cooling. Recent data suggests large holders are reducing their exposure. This triggered concerns about the memecoin’s short-term trajectory. While network usage on Shibarium has spiked in recent days, price momentum remains weak, and chart signals lean bearish.
Whales Dump Trillions in SHIB
According to data from Santiment, wallets holding between 100 million and 1 billion SHIB have offloaded a significant portion of their holdings since mid-April. As of this week, the total supply held by whales dropped to 730.01 trillion tokens from 751 trillion. This is a 2.6% decline since March.
This is the lowest whale holding level in five months. Typically, such a decline signals reduced conviction from long-term large holders. When this class of investor exits quietly, it often precedes periods of downward pressure. This is especially the case if retail demand fails to compensate.
Interestingly, some of that Shiba Inu supply appears to have shifted toward mid-sized wallets, with top non-whale addresses gradually increasing their share. However, this redistribution is not always bullish. It can suggest weaker hands absorbing supply without the liquidity to support price resilience.
Shibarium is Active, but Price Isn’t Responding
While SHIB’s price continues to consolidate, Shibarium — the project’s Layer-2 blockchain — has shown signs of life.
Blockscout data shows that cumulative transactions recently crossed 1.2 billion. Moreover, daily new transactions spiked to nearly 6 million on June 8. Active accounts also ticked higher, and gas fees briefly surged during the peak.
However, this flurry of activity hasn’t translated into price strength. SHIB remains pinned under its short-term moving averages. This raises the possibility that much of the usage is either automated or not directly tied to value capture for SHIB holders.
Descending Triangle Threatens Breakdown — SHIB Faces 20% Drop if Support Fails
Shiba Inu (SHIB) continues to trade in a descending triangle pattern — a classic bearish continuation structure — with repeated lower highs pressing against a horizontal support at $0.00001150. This base was previously a resistance level but has now flipped into support, as highlighted by the recent price reaction near that level.
All four major EMAs (20/50/100/200) on the 4-hour chart are sloping downward and positioned above the current price, which confirms a bearish structure. SHIB has also failed to sustain bounces above its short-term moving averages (20 and 50 EMA), suggesting that rallies are being sold into.
The Relative Strength Index (RSI) is hovering around 40, not yet in oversold territory, which leaves room for further downside before a potential technical rebound. Volume remains modest and does not show accumulation — another sign of hesitation among buyers.
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A descending triangle typically resolves in the direction of the existing trend — in this case, downward. If $0.00001150 breaks decisively, the next major support lies near $0.00001030, which served as a consolidation base in early May. Below that, further downside could extend toward $0.00000970, a psychological and historical support zone.
On the upside, bulls would need to push SHIB back above $0.00001260 (20 EMA resistance) and reclaim $0.00001325 to invalidate the bearish setup. However, such a move would require both volume expansion and a shift in market sentiment — neither of which are currently visible.
