SHIB Remains Bearish Despite Shibarium L2 Launch

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Shiba Inu (SHIB) has experienced a 13% correction since the start of March. An instant SHIB rebound looks unlikely as whale momentum wanes. Will the sell-wall at $0.000011 force another downswing? 

The Shiba Inu (SHIB) meme coin has recently struggled to attract whale interest. 

Shiba Inu Whales Are Trading Less

Shiba Inu (SHIB) is the second-largest meme coin by market capitalization. After experiencing a purple patch in early 2023, SHIB raced to a 6-month high of $0.000015 on Feb. 4. But since then, the meme coin has retraced nearly 30% as of March 28. 

Many Shiba Inu network participants pinned hopes of the recent Shibarium L2 launch to expand network capacity and trigger a price rebound. But hopes of an instant price surge seem increasingly unlikely as whale trading activity continues to decline. 

According to the renowned blockchain data analytics platform, Santiment, whale transactions involving SHIB have declined since the recent local top on Feb 4. 

As the area shade red in the chart below shows, Shiba Inu whales have been making fewer transactions in the past month. From Feb 4 and March 28, transactions exceeding $100,000 have reduced from 535 to 32. 

Shiba Inu (SHIB) Whale Transaction Count, March 2023. Source: Santiment

When the number of whale transactions declines persistently on a network, it implies that large investors are losing interest. This could signal to other investors that the underlying native token has weak price prospects for the near future. Unless Shiba Inu can attract whale interest to the network, SHIB may experience further downswings in the coming weeks. 

Similarly, the recent selling trend among long-term SHIB holders also confirms the bearish outlook. 

There has been a considerable decline in the Mean Coin Age of recently traded SHIB coins, as reported by Santiment. As shown in the chart below, SHIB Mean Coin Age (90d) has declined from 39.54 on Feb. 2, to 27.76 as of March 28. 

Shiba Inu (SHIB) Mean Coin Age, March 2023
Shiba Inu (SHIB) Mean Coin Age, March 2023. Source: Santiment

The Mean Coin Age (90d) analyses the days recently traded coins stayed in their previous address. A decline in mean coin age typically implies that long-term holders are increasingly divesting from the network. 

In summary, other investors could panic if Shiba Inu whales remain lukewarm and long-term holders continue to deplete their holdings. Ultimately, a panic sell-off could cause SHIB to experience more downswing. 

SHIB Price Prediction: $0.000009 Is the Next Stop

Shiba Inu could soon drop toward $0.000009, according to the Global In/Out of Money (GIOM) data presented by IntoTheBlock. As depicted below, SHIB has significant support at $0.000009, the average price that 147,000 wallet addresses had paid for 24 trillion coins. 

But if this support does not hold, it could trigger a panic sell-off that could cause SHIB to drop toward $0.000009. At this zone, another 164,000 addresses holding 54 trillion SHIB could offer considerable support.

Shiba Inu (SHIB) Global In/Out of Money data. March 2023
Shiba Inu (SHIB) Global In/Out of Money data. March 2023. Source: IntoTheBlock

Yet, this bearish stance could be invalidated if SHIB rises above $0.000012. But this is hard done, as a sell wall of 235 trillion coins by 197,000 addresses will pose a strong resistance.  

However, if SHIB scales that resistance, it could increase toward $0.000017, where another 96,000 wallet addresses holding 446 trillion could halt the rally. 

Disclaimer

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