Shiba Inu price at risk as whale sell-off meets rare technical setup

Shiba Inu’s price has been on a strong downward trend this year, and a rare chart pattern points to more downside as whales dump and exchange balances rise.

Shiba Inu (SHIB), the biggest Ethereum meme coin, was trading at $0.00001052, down 70% from its highest level in December of last year. This plunge has erased billions of dollars in value, with its market cap falling to $6.9 billion from the November high of $18.8 billion.

SHIB price could be at risk of more downside as its fundamentals disappoint. Data show that the supply of SHIB coins on exchanges has started rising this week. There are now 276 trillion tokens, up from 275 trillion on Sunday. Rising exchange inflows are a sign that investors are selling their coins.

Meanwhile, whale and smart-money investors have started selling their tokens. Whales now hold about 91.96 billion tokens, down from 213 billion this week. Also, smart-money investors have reduced their holdings substantially in the past few weeks.

Meanwhile, activity in Shibarium has faded in the past few months. It now has a total value locked of just $865,000, a 50% plunge from a month ago. This crash has accelerated after the recent ShibaSwap hack. 

Shiba Inu’s burn rate has continued to deteriorate in the past few months. For example, only 571,347 SHIB coins worth about $5 were burned on Wednesday. One reason for this is that the Shibarium network is not making any money.

Shiba Inu price technical analysis

SHIB price chart | Source: crypto.news

The daily time frame chart shows that the SHIB price has been in a downtrend this year. It has now formed a descending triangle pattern whose lower side is at $0.00001052, its lowest point in April and June this year. The upper side connects the highest swing since February.

Shiba Inu price confirmed this pattern during last week’s crypto market crash. It has now formed a break-and-retest pattern by moving back to the lower side of the triangle. 

Therefore, the token will likely resume the downtrend and get to a low of $0.0000060. This target is estimated by first measuring the widest point of the triangle and then the same distance from the triangle’s lower side.