Shiba Inu Holders Sell Heavily as Price Hits 3-Week High

A recent report highlights a concerning trend for Shiba Inu (SHIB): long-term holders are selling off their assets at a rapid pace, even as the price hits a three-week high. This profit-taking is creating significant sell-side pressure and raising questions about the sustainability of the recent price rally.

The Rally: A Brief Respite

Over the past week, SHIB's price climbed, reaching a three-week high of $0.00001291, representing a 6.69% weekly increase. This upward momentum was a welcome sight for many investors, but it appears to have triggered a powerful wave of selling from a key segment of the market.

Long-Term Holders Exit: A Bearish Signal

The article notes that a massive sell-off of over 906 billion SHIB, valued at around $11.6 million, was initiated by long-term holders. This activity is reflected in a sharp spike in the "age consumed" metric, which hit a three-month high, indicating that dormant coins are moving to exchanges. This behavior suggests that even the most committed investors are losing conviction and opting to take profits, which is a bearish signal for the token's future.

The Price Outlook: A Critical Juncture

The influx of selling pressure puts SHIB's price at a critical point. The token is currently attempting to hold the $0.00001285 support level. If this level fails, the price could retrace to $0.00001252 or even $0.00001182, wiping out its recent gains. Conversely, if the buying pressure from other traders can absorb the sell-off and successfully defend the support, the price could rebound and target $0.00001391.

📌 Conclusion

The current market dynamic for Shiba Inu is a classic battle between a price rally and a powerful sell-off from long-term holders. The heavy profit-taking and the bearish signals it sends to the market suggest that the recent price gains may be short-lived. The token's future will depend on whether its current support level can withstand the selling pressure or if it will succumb to a deeper correction.

🔐 Disclaimer

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.