Shiba Inu Holds Support As Whale Selling Sparks Caution

Shiba Inu recently traded around $0.00000516 after bouncing back nearly four percent earlier in the week. Despite this recovery, recent whale activity and weak derivatives data show that traders are staying cautious about the popular memecoin. The token is currently holding above its 50 day exponential moving average, but rising selling pressure could lead to another price drop.

Data from Santiment shows that larger holders are scaling back their positions. Wallets holding between one million and one00 million tokens have sold a combined 40 billion SHIB since August 22. While smaller addresses have bought about 990 million tokens during the same period, their buying power is not enough to absorb the heavy selling from larger accounts. Meanwhile, derivatives data reveals a long to short ratio of 0.93, meaning more traders are betting on a price decline.

Technical indicators present a mixed picture for the token. The Relative Strength Index sits at 54 and is pointing upward, which suggests bullish momentum is slowly improving. However, the Moving Average Convergence Divergence indicator recently formed a bearish crossover, pointing to lingering downward pressure.

For the short term outlook, traders should watch the 50 day moving average near $0.00000489 as the main support level. If that level holds, buyers might push the price toward the 200 day moving average at $0.00000569. If support fails, the token could face a deeper correction.