SHIB Faces 18% Drop Amid Mixed Market Signals

Key Takeaways
- Shiba Inu (SHIB) is facing a potential price drop of 18%.
- Large investors (“whales”) continue to buy heavily despite negative market signals.
- Smaller investors are pulling back, indicating market uncertainty.
- Technical indicators point to a downward trend.
- Short positions clearly outweigh long ones, which could create additional selling pressure.
Whales Are Buying While Retail Investors Are Selling
In the past 24 hours, Shiba Inu has dropped more than 7.5%, testing a key support level around USD 0.00001240. Despite this negative development, trading volume in large transactions has surged. According to data from IntoTheBlock, transactions valued between USD 100,000 and USD 1,000,000 increased by 175.86%. Volume in the USD 10,000 to USD 100,000 range also rose by 147.79%.
In contrast, activity among smaller investors has significantly declined. Transactions between USD 10 and USD 100 fell by 69.62%, and those between USD 100 and USD 1,000 dropped by 21.10%. The data suggests that institutional investors or high-net-worth individuals are taking advantage of the price dip to expand their positions, while retail investors are responding by selling.
Technical Analysis: Price Under Pressure
The current SHIB price is around USD 0.0000124. Should the price close below this level, analysts expect a further decline of up to 18%. The reason: the price has broken below the 200-day Exponential Moving Average (EMA) — a classic sign of a downward trend.
One possible silver lining: if the price stabilizes above the current level, a trend reversal could be possible. Historically, similar movements have been followed by price increases of comparable magnitude.
Short Positions on the Rise
Another sign of current market scepticism comes from analytics platform CoinGlass. Their data shows that short positions — bets on falling prices — have increased significantly around the USD 0.00001306 level. The total value of open short positions is approximately USD 942,000, while long positions amount to only USD 612,000.
This imbalance suggests a clear expectation of declining prices. If the price continues to fall, more short selling could be triggered, further increasing downward pressure.
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Our Assessment
The current situation surrounding Shiba Inu is tense. Technical indicators and investor behaviour point to a clear downward momentum. While smaller investors are pulling back, experienced investors are using the dip as a buying opportunity. Whether this signals a coming recovery or simply a calculated risk remains uncertain.
If you’re invested in SHIB or considering it, you should closely monitor current support zones and the actions of major investors. In a volatile market like this, risk management is key.
Sources
- IntoTheBlock
- CoinGlass
- TradingView