Shiba Inu (SHIB) faced a week of consolidation as its bullish momentum weakened. The second-largest memecoin by market capitalization is at a critical juncture, with on-chain analysis pointing to key data points that could determine its price action in the days ahead.
The recent rally in SHIB’s price came as a result of the broader market surge, driven by Bitcoin’s (BTC) upward momentum. However, on-chain data reveals that whales in the SHIB market have significantly reduced their trading activity since the token was unable to breach the $0.000008 resistance on October 24.
According to IntoTheBlock, on October 24, Shiba Inu whales engaged in 69 Large Transactions, marking a two-month high. However, as of November 2, this number has fallen to 39 whale transactions, representing a significant 44% decline. This reduction in large transactions is often seen as a bearish signal, indicating decreased interest among large institutional investors. This sentiment could potentially influence retail traders to adopt a negative outlook on SHIB’s future prospects.
The Aggregate Order Books, which provide a snapshot of active market orders for an asset, indicate a decrease in demand across SHIB spot markets. Active sell orders for 6.5 trillion SHIB tokens outnumber the buy orders, which total 6 trillion SHIB tokens across ten different crypto exchanges. This suggests that sellers may have to lower their prices to compete in the market due to weakened demand.
Taking these on-chain statistics into account, it is likely that Shiba Inu could experience a further price decline toward $0.000006 in the coming days. The Global In/Out of the Money (GIOM) chart, which shows the entry price distribution of current SHIB holders, also supports this bearish scenario. If Shiba Inu loses vital support at $0.000007, it could trigger larger losses.
If, however, the bulls manage to reclaim the $0.00001 resistance level, this bearish prediction could be invalidated. Currently, 153,700 addresses are holding 68.5 trillion SHIB tokens acquired at an average price of $0.000008. If these holders decide to book profits, SHIB’s price may experience a pullback. In the case of a breakthrough above the resistance level, Shiba Inu’s price could rally toward the $0.00001 range.