As Bitcoin’s price declines from its recent peak of $70K to the low of $65K level, the once-lucrative meme coin market is feeling the pressure. The sector had previously offered robust returns exceeding 500% among the top tokens by market capitalization. Now, traders are cautiously eyeing potential gains in meme coins amid the downturn. However, SHIB price is witnessing a surge in selling demand as it declines heavily with a drop in whale interest.
SHIB Faces A Drop In Whale Interest
Bullish traders are facing substantial losses, with Coinglass noting liquidations exceeding $566,000. The total liquidation is now nearing the $600K mark. Interest in trading Shiba Inu has sharply declined, as reflected in open interest dropping by 6.1% to $68.8 million. This slowdown in market activity has resulted in reduced price volatility for SHIB.
Based on IntoTheBlock data, whale interest has sharply decreased in recent weeks. On June 11, large transactions amounted to $467 million. However, with the crypto market experiencing bearish pressure following softer-than-expected CPI news, whale interest in SHIB declined significantly. This metric dropped over the past week, hitting a low of $24 million—a staggering 94% drop.
As big investors step back, selling pressure on SHIB might ease, which could make SHIB price more stable. But fewer big investors also suggest less confidence and less trading overall. This could mean less money available for SHIB trading and more quick price changes for smaller investors.
However, over the past 24 hours, the rate at which SHIB is being burned has surged dramatically. Data shows a 164315.09% increase in the SHIB burn rate, resulting in a total of 10,361,439 SHIB destroyed so far.
As more SHIB tokens are burned, the total supply decreases. This reduction in supply, if demand remains constant or increases, can potentially lead to a higher price per SHIB token.
What’s Next For SHIB Price?
Shiba Inu has been gradually declining below the critical support level at $0.000020 as sellers took the lead with strong selling dominance. As a result, buyers failed to defend the price above immediate Fib channels, resulting in a strong bearish pattern. As of writing, SHIB price trades at $0.0000192, declining over 8.2% in the last 24 hours.
A recovery above the $0.000020 level, followed by a breakthrough above the moving averages, would indicate a continued trading range. This scenario could prompt bulls to target the resistance at $0.000026 for the SHIB/USDT pair. A successful move above that level might send the price toward $0.00003.
Conversely, a bearish move below the moving averages would suggest continued bearish pressure. A strong close below $0.00001825 would signal a potential downtrend continuation towards the 78.6% Fibonacci retracement level at $0.000015. As the RSI levels hovers within the oversold region, SHIB price might soon test buyers’ patience.
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