- ShibaInu (SHIB) has seen a massive 248% surge in whale transactions, but the price continues to decline, suggesting potential distribution rather than accumulation.
- Despite the spike in large-volume activity, technical indicators remain bearish, and investors should proceed with caution.
ShibaInu (SHIB) just witnessed one of the most dramatic surges in whale activity in recent memory — a jaw-dropping 248% spike in large transactions. At first glance, such on-chain volume might suggest bullish accumulation. But a closer inspection reveals a far more unsettling possibility: whales may be offloading their tokens.
ShibaInu Whale Transfers Surge Amid Price Weakness
According to data from IntoTheBlock, SHIB has seen a major uptick in transactions valued between $1 million and $10 million. This spike usually indicates strong accumulation by big players. However, the broader price action paints a different picture. Despite the transfer frenzy, SHIB has continued its downward drift and now clings to support around $0.00001217.
Adding to the bearish outlook, SHIB is currently trading well below its 200-day EMA, a major technical resistance level. The Relative Strength Index (RSI) remains weak, barely holding neutral ground, signaling a lack of bullish momentum. In short, whale activity is up — but so is selling pressure.
Is This Exit Liquidity in Disguise?
This contradiction suggests that large holders might be exiting, not accumulating. With retail trading volumes drying up and technical indicators flashing red, the sudden transfer boom could represent whales capitalizing on limited liquidity before a deeper decline.
If the key support at $0.00001200 fails, ShibaInu could tumble below $0.00001000, a price zone not seen since early 2024. Such a move could deeply damage investor confidence and mark the start of a more extended bearish phase.
Caution is Key
While the 248% rise in whale activity shows that SHIB is still on the radar of major holders, it doesn’t guarantee a bullish turnaround. In fact, this could be the early signs of a distribution phase in a fragile market.
Investors should remain extremely cautious — high volume doesn’t always mean strong buying interest. Sometimes, it’s just smart money heading for the exit.
