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SHIB Spikes Then Reverses Sharply as Whale Activity Turns Bearish
Shiba Inu’s price swings reveal quick gains and sharp reversals, while on-chain data shows whales reducing exposure, hinting at short-term bearish pressure.
Updated Jun 2, 2025, 9:10 p.m. Published May 21, 2025, 8:35 a.m.
What to know:
- SHIB rallied 3.18% with strong volume support, reaching $0.00001492 before retracing 1.9% in the final trading hour, according to CoinDesk Research's technical analysis data model.
- Over 25.74 trillion SHIB tokens are currently held within a critical $0.000014-$0.000015 support/resistance zone by 34,170 addresses.
- Despite a record 106,040% spike in the 24-hour burn rate, SHIB continues to struggle below a dominant descending trendline resistance.
Shiba Inu has displayed conflicting market indicators in recent trading sessions. The token initially demonstrated bullish momentum with significant volume support, but this quickly gave way to intense selling pressure.
Technical analysis reveals SHIB is consolidating below key resistance levels, with traders closely monitoring the $0.00001450-$0.00001600 zone for potential breakout signals. On-chain metrics paint a concerning picture, with declining whale netflows (-311%) and a substantial 68% decrease in active addresses since December.
STORY CONTINUES BELOW
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The current market structure suggests continued ranging behavior may precede a decisive directional move, with confirmation requiring a break above the descending trendline resistance at approximately $0.00002044.
With only 17% of holders currently in profit while over 80% remain underwater, any significant price increase could face substantial selling pressure as investors seek to break even.
Analysts remain divided on SHIB's near-term prospects, with some identifying potential bullish patterns while others point to weakening fundamentals as cause for caution.
Technical Analysis Highlights
- SHIB established significant high-volume support at $0.00001417 during the 19:00 hour, followed by consistent buying pressure.
- Notable volume spikes occurred during the 04:00-06:00 timeframe, exceeding 700 million USD, confirming initial bullish momentum.
- The final trading hour saw a sharp 1.77% retracement from the high, suggesting profit-taking after the rally.
- A bearish EMA stack has formed, with price struggling to reclaim the 50-day moving average.
- A descending channel pattern emerged in the hourly chart, with lower highs and lower lows indicating short-term bearish sentiment.
- A volume spike of over 110 billion in trading coincided with a sharp breakdown below key support levels.
External References
- "SHIB Price May Jump to $0.000033 in Upcoming Rally, Analyst Says", The Crypto Basic, published May 20, 2025.
- "Shiba Inu Coin Reaches Bearish EMA Stack After Early May Rejection: Will It Hold $0.00001450?", CoinPedia, published May 20, 2025.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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