Top meme coin Shiba Inu shows signs of an extended bearish trend as large investors strengthen their profitable activities.
This wave of sales pressure caused a decline in the value of memecoin and fell below the ascending parallel channel, a key structure that supported price action from June 22nd to July 27th.
Sivbulls lose grip as large holders cause breakdowns
Major Meme Coinsiv is breaking under the low trendlines of rising parallel channels that have been trading for more than a month.
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Such failures are interpreted as an early indication of trend reversal, especially when accompanied by weakening demand and increasing sales volumes.
In Shiv’s case, the collapse coincides with a rapid surge in whale sales. IntotheBlock’s on-chain data revealed a 456% DIP to large-scale owner Netflow last week, confirming that key investors have left their positions and are realizing profits.
Large holders are the addresses of whales that hold more than 1% of the distribution supply of assets. Their Netflow tracks the difference between the coins they buy and the amounts sold over a specific period.
When Netflow, a large holder of assets, soaks like this, more tokens flow from the whale’s wallet. This indicates increased profits. It is often a sign of a price decline.
In Shib’s case, the sharp decline in Netflow confirms that major investors offload their holdings. This reduces market confidence and adds downward pressure to the value of the token.
Futures Market Retreat suggests a deeper loss
The sentiment in the derivatives market reflects the weaknesses seen in the chain. Shib’s open interest in futures contracts has been steadily declining since July 22nd, plummeting 35% to reach $2248 million at the time of writing.
This sustained drop suggests that traders are increasingly rewinding their position, with fewer participants willing to bet on the short-term benefits of tokens.
As open interest falls along with prices, it is an overall sign of cooling momentum. In Shiv’s case, the drop strengthens the bearish outlook, suggesting that belief and capital are leaving the market.
Siv Bulls Eye $0.00001467, but whale activity clouds the road
SHIB traded at $0.00001351 at press and faces strong resistance of $0.00001362. If whales sell continues, this price barrier can strengthen the price of Shiv and force the trend downwards on the support floor at $0.00001239.
However, for new demand rockets, Meme Coin could violate $0.00001362 and surge to $0.00001467.
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