Whale Shiba Inu is dumping heavily, pushing the price down lower.

The strong correction in October has pulled Shiba Inu (SHIB) out of the accumulation zone that lasted for 8 months, marking an important turning point in the price structure of this meme coin.

Currently, the bottom zone of the old price range has reversed to become a resistance level, creating a “supply wall” that the SHIB bulls have not yet been able to conquer.

The overall market sentiment, especially in the memecoin segment, remains gloomy. Dogecoin (DOGE) is facing increased selling pressure and is at risk of losing a crucial support zone — a factor that could put additional downward pressure on Shiba Inu.

In the past 24 hours, the amount of SHIB burned has significantly decreased; however, when looking at the weekly timeframe, this figure has still increased by 139% compared to the previous week, indicating that network activity remains vibrant.

According to Coin Photon, price fluctuations along with the behavior of “whales” are sending significant signals that could shape the next direction of SHIB in the upcoming period.

The “whale” signal retreat reduces the recovery opportunity of Shiba Inu

Right after October 10th, the number of transactions by “whales” – investors holding large amounts of SHIB – surged, indicating a panic sentiment spreading within this group. The dormant circulation index – reflecting the amount of tokens that have not moved for a long time suddenly being activated – also recorded a strong increase on October 19th and 26th, proving the large-scale transfers of SHIB during these times.

These fluctuations coincide with the rapid decline in the amount of SHIB held by “whales”. Notably, this index has gradually decreased since the beginning of September, reflecting the increasingly pessimistic outlook of major investors.

In summary, on-chain data shows stable selling activity from “whales”, combined with several unusual spikes in dormant circulation – typical signals that often appear during bear market phases.

Source: Santiment## Bears dominate, but a short-term zone of fluctuation appears.

In the past three weeks, SHIB has been fluctuating within a short-term zone from 0.0000093 to 0.0000113 USD. The midpoint of this zone, around 0.0000103 USD, is becoming an important resistance level, causing all recent recovery efforts to be held back, forcing SHIB to return to test the bottom zone.

Source: TradingViewOn the 4-hour frame, the MACD indicator continues to show that bearish momentum is prevailing. In contrast, the OBV indicator has recorded higher lows continuously over the past three weeks, providing a small glimmer of hope for the bulls.

However, when looking at the overall price structure and momentum on larger time frames, the dominant trend of Shiba Inu still leans toward the bears, signaling that selling pressure has yet to ease.

SN_Nour