Shiba Inu Gains, But Whale Holdings Hit Two-Year Low

Shiba Inu (SHIB) has gained 8% in the past week, attempting a recovery after a significant monthly decline. With a market cap nearing the $10 billion mark, it remains the second-largest meme coin, trailing behind Dogecoin. However, despite the recent price increase, indicators suggest mixed signals, as buying pressure struggles to gain momentum.

The Relative Strength Index (RSI) for SHIB climbed but failed to enter the overbought zone, indicating that while demand increased, it wasn’t strong enough to push further gains. Currently, RSI sits in a neutral position, meaning no clear trend is dominating. If buying activity picks up again, SHIB could attempt another breakout, but if momentum fades, consolidation or a pullback may follow.

At the same time, whale holdings have dropped to their lowest level since 2022, signaling reduced confidence among major investors. Large holders, who often impact price trends, have been steadily decreasing since mid-January. This decline suggests weaker long-term accumulation and potential selling pressure, which could limit SHIB’s ability to sustain strong rallies. The number of whale wallets has seen a notable drop over the past month, and while the decline has slowed recently, the downward trend remains a concern.

From a technical perspective, SHIB’s moving averages still show a bearish pattern, but the gap between short-term and long-term trends has begun narrowing. This could indicate a possible shift in momentum. If SHIB gains enough strength, it may retest its nearest resistance level. A successful breakthrough could trigger further gains, potentially reclaiming its highest price since mid-January.

On the downside, if bearish momentum intensifies, SHIB might struggle to hold its key support levels. A breakdown below these levels could lead to a deeper decline, reinforcing selling pressure. The coming days will be crucial in determining whether SHIB can build on its recent recovery or face another downturn.