SHIB Fails To Breakout Again
Shiba Inu let down its investors and traders once more, as it experienced a price drop. The meme coin was unable to break past its crucial 50 EMA resistance level.
Instead, it retraced below said level, which saw it lose traction and drop towards previous price levels. The current chart shows that the second-largest meme token is in trouble, at least for now.
Technical analysis
According to the technical analysis, the Shiba Inu token is struggling to maintain its upward momentum. The price action highlights its failure to break out from the 50 EMA.
This has led to a pullback that has brought the price of SHIB below this crucial resistance level. Due to this setback, there might be further declines in the price of the token.
It could see Shiba Inu move towards the support level at $0.000024. If it is unable to hold this support level, the next price target would be $0.000022 and this is another important support level.
The on-chain data is also worrying. There has been a spike in the number of large transactions, which are valued at $100,000, or higher. The last 24 hours saw a total of 378 large transactions.
The data
This increase in their number could be a sign of rising activity amongst whales, which means there is a possibility of increasing selling pressure.
The trading volume of these large transactions climbed to 9.87 trillion SHIB tokens, which is close to the seven-day high of 9.6 trillion SHIB.
Furthermore, there has been a decline in the Network Value to Transaction (NVT) ratio in the last 24 hours. It has recorded a drop of 22.70%.
This suggests that there is a decline in market value relative to transaction volume. This fall in the NVT ratio could be due to weakening market sentiment.
It means that there is a possibility that investors have lost confidence in the short-term performance of the Shiba Inu token.
Whale activity
Large holder inflows of the dog-themed token have recorded a massive surge of 1,590%. This is due to significant whale activity.
Data from IntoTheBlock shows that between May 15th and May 16th, large holder inflows increased from 728.17 billion SHIB to 3.97 trillion SHIB.
It is possible that this could be due to increased buying activity from whales. A lot of whales make their purchases on centralized exchanges and then shift them into cold storage.
Secondly, large holder inflows could also point towards price bottoms. This is because whale addresses often purchase in bulk after there have been significant price corrections.
Both scenarios could be possible, as the meme token is currently battling key resistance. In the last 24 hours, its price has recorded a decline of 2.5%.
Bulls are continuing their battle of trying to execute a breakout in the price of the SHIB token from its 50-day EMA.
