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Whale Activity Slows Down
The Shiba Inu price slipped by over 3% on Sunday, retracing some of the gains earned on Friday after Jerome Powell’s comments at the Jackson Hole Summit. The downturn reflects broader crypto market weakness as Bitcoin, Ethereum, and other altcoins followed similar patterns.
According to Nansen, whale and smart money wallets have sharply reduced their exposure to SHIB. Smart money investors currently hold around 40.42 billion tokens, down from a July peak of 48.6 billion, with no significant accumulation since August 5. Similarly, whale wallets hold about 45 billion SHIB coins, a decrease from last month’s high of 47.6 billion.
This decline suggests that institutional and high-net-worth investors remain cautious about Shiba Inu’s trajectory after its 60% decline from November’s highs. A prolonged lack of whale activity typically signals uncertainty and may lead to reduced momentum in the short term.
Shibarium Ecosystem Faces Pressure
Shiba Inu’s long-term vision goes beyond being a meme coin, with Shibarium designed as its layer-2 network to add real utility. Shibarium was intended to boost activity by supporting DeFi protocols, reducing fees, and contributing to SHIB scarcity through token burns.
However, on-chain data indicates Shibarium’s growth momentum has stalled. The total value locked (TVL) on the network has dropped to just $1.79 million. Unlike thriving ecosystems like Ethereum or Solana, Shibarium hosts only 17 protocols, including WoofSwap, ChewySwap, and DogSwap, none of which have gained significant traction.
Moreover, Shibarium currently lacks stablecoin activity, which is crucial for DeFi adoption. This limitation further curtails Shiba Inu’s broader ambitions of transitioning from a meme coin into a token with sustained ecosystem demand.
Shiba Inu Technical Outlook
From a technical analysis perspective, Shiba Inu is in a consolidation phase. On the daily chart, SHIB has been moving sideways and trading near its 50-day and 100-day Exponential Moving Averages (EMAs).
The Average True Range (ATR), a key volatility indicator, has been decreasing, highlighting reduced price swings. Additionally, SHIB has formed a symmetrical triangle pattern, with its two converging lines suggesting a breakout could be imminent.
A bullish breakout could push SHIB towards its resistance at $0.00001600, the peak reached on July 22. Conversely, a bearish breakdown could send it back to $0.00001015, the June low. Traders should closely monitor these levels, as symmetrical triangles often resolve with sharp price moves.
Market Sentiment Remains Divided
The crypto market sentiment surrounding Shiba Inu remains mixed. On one hand, reduced whale activity and a declining Shibarium ecosystem paint a bearish picture. On the other hand, the technical setup points toward a breakout opportunity.
If whales return and network adoption accelerates, SHIB could regain bullish momentum and reclaim lost ground. But without renewed activity, risks remain high for further downside.
For now, Shiba Inu investors are waiting for a clear directional signal, as both technical and fundamental indicators suggest an approaching inflection point.