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Shiba Inu Crash Fears Rise, But Whale Data Shows Recovery Potential

Shiba Inu Price Weak but Stable as Whales Hold Steady and Trading Volume Supports Potential Recovery

  • Shiba Inu (SHIB) price is currently weak, trading below key moving averages and consolidating between $0.0000090 and $0.0000100.
  • Large SHIB holders (whales) are not significantly selling or distributing their tokens, indicating no expectation of a collapse.
  • Trading volume remains sufficient to support price discovery, preventing the token from crashing to zero.
  • Market conditions and trading activity suggest potential for recovery if broader crypto sentiment improves.
  • Liquidity and exchange listings help maintain SHIB’s market presence despite current stagnation.

The meme cryptocurrency Shiba Inu (SHIB) is experiencing a period of weakness as its price stays below major moving averages and consolidates in a narrow range between $0.0000090 and $0.0000100. This has sparked fears across crypto communities that the token might collapse to zero, causing concern among investors watching their portfolios decline.

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Despite these fears, on-chain data shows that large SHIB holders, also known as whales, are not selling significant amounts of their holdings. Instead, they are either holding steady or making small additions. According to an analyst, one whale moved approximately $2.6 million worth of SHIB entirely within the Coinbase exchange over two days without external transfers or swaps, likely indicating liquidity testing or institutional repositioning. This suggests that major holders are not preparing for a sell-off, which conflicts with the narrative of an imminent crash.

Trading volumes for SHIB on major exchanges remain adequate to support genuine price discovery, preventing the token from hitting zero. The current consolidation range often precedes a potential price breakout either upward or downward. If broader market sentiment improves, such as Bitcoin’s stabilization or increased risk appetite, SHIB could test resistance levels near $0.0000105 to $0.0000110. Oversold market indicators also support a possible short-term price rebound.

While the token is stagnant and may trade sideways for an extended period, the underlying market structure remains intact. SHIB holds a multibillion-dollar market capitalization, significant liquidity, major exchange listings, and an established ecosystem. These factors provide a foundation for recovery should favorable market conditions return.

In summary, the risk of Shiba Inu crashing to zero is minimal as long as trading continues and whales maintain their holdings. The key for investors is enduring the current consolidation phase and awaiting shifts in crypto market volatility that could revive momentum for meme coins like SHIB. For further insights, refer to this report.

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