Shiba Inu Price Consolidates as Whale Activity Dries Up
Shiba Inu price retreated over 3% on Sunday, wiping out Friday’s gains after Fed Chair Jerome Powell’s Jackson Hole comments. Smart money and whale activity have slowed. Nansen data show savvy investors hold 40.42 billion SHIB, down from 48.6 billion in July, while whales control 45 billion SHIB, versus 47.6 billion last month. This comes after a 60% crash from November highs.
On-chain metrics for Shibarium, Shiba Inu’s layer-2 network, also weakened. Total value locked fell to $1.79 million with no stablecoin usage. Only 17 DeFi protocols remain active, including WoofSwap and ChewySwap. Originally designed to boost Shiba Inu utility and burn tokens via BONE-to-SHIB fees, lower activity has reduced burns.
Technically, the Shiba Inu price is consolidating along its 50- and 100-day EMAs, with the Average True Range declining. A symmetrical triangle pattern is forming. A breakout above the triangle could send SHIB toward $0.00001600, while a breakdown might push it to $0.00001015. Traders will watch these levels for direction.
Neutral
Shiba Inu price consolidation combined with reduced whale activity signals market indecision. Historically, similar periods of low volatility and dwindling smart money participation have preceded both sharp rallies and declines. For example, prior to SHIB’s April 2024 breakout, low whale buying coincided with two weeks of sideways trading, while a comparable consolidation in June triggered a 15% drop. In the short term, traders will monitor a breakout above the triangle’s resistance at $0.00001600 or a breakdown below support at $0.00001015 for directional cues. Over the long term, persistently weak on-chain metrics, declining Shibarium fees, and reduced token burns may weigh on SHIB unless ecosystem activity recovers. Thus, the immediate outlook is neutral pending a clear technical resolution, though underlying fundamentals lean toward cautious bearish sentiment.