NAIROBI (CoinChapter.com)—Shiba Inu (SHIB) is testing key support levels as market uncertainty grips the broader crypto space. With exchange reserves at historic lows and whale activity shifting, investors are eyeing potential price moves.
SHIB Holds Above Key Support, But Risks Remain
Shiba Inu is struggling near $0.0000125, facing downward pressure after losing 21% in the past month. The memecoin recently dipped to test crucial support at $0.0000115, a level that analysts warn could determine its next move.
According to Ali Martinez, the $0.0000115 and $0.00000815 levels are critical for SHIB’s stability. A break below these could push the price further down, while a bounce could fuel a recovery.
Despite recent losses, SHIB gained 2.35% in the past 24 hours, offering some relief to traders. Market sentiment remains cautious, with long-term holders showing resilience even as short-term investors exit.
Exchange Reserves Hit Record Low—A Bullish Signal?
On-chain data suggests a potential shift in SHIB’s market dynamics. CryptoQuant reports that SHIB reserves on exchanges have dropped to an all-time low of 93.573 trillion tokens, accounting for just 15.88% of the total circulating supply.
Source:CryptoQuant
A decline in exchange-held tokens often signals reduced selling pressure, as investors move assets to private wallets. Historically, such trends have preceded price increases, hinting at potential upside if demand rises.
However, whale activity remains a key factor. Data from Glassnode shows large holders now control 15.76% of SHIB, a decline from previous levels. This shift suggests retail investors are accumulating while some whales take profits.
Analysts See Diverging Paths—Breakout or More Losses?
Javon Marks has set a bullish target of $0.000081, predicting a 500% gain if current momentum sustains.
“The breakout target at $0.000081 remains unchanged! As SHIB sustains its bullish momentum and uptrend, the possibility of a massive 500% upside remains well in play,” Marks stated.
Meanwhile, broader market conditions present challenges. SHIB’s correlation with Bitcoin stands at 0.84, meaning its price closely follows BTC’s movements. If Bitcoin rallies, SHIB could follow—but if BTC declines, SHIB may struggle to hold support.
Shiba Inu Millionaires Decline as Market Pressures Mount
The number of SHIB millionaires has dropped in recent weeks, reflecting the impact of its price slump. At the current price of $0.00001254, many long-term holders face a 56% unrealized loss.
IntoTheBlock chart showing addresses holding Shiba Inu
According to IntoTheBlock, SHIB wallets holding between $1 million and $10 million have fallen to 799, down from 880 last month. Similarly, addresses holding over $10 million in SHIB have declined from 75 to 62.
Despite this, 76% of SHIB holders have not sold in over a year, indicating strong conviction among long-term investors.
What’s Next for SHIB?
If support at $0.0000115 holds, a rebound could follow, especially with declining exchange reserves reducing sell pressure. However, failure to hold this level may open the door for a drop toward $0.00000815.
With whales shifting positions and retail investors accumulating, the coming weeks will be critical in determining SHIB’s next trend.