Shiba Inu (SHIB) is threatened to note a decline due to the lack of recovery observed in the broader market cues.
SHIB investors are not keenly bullish either, which could translate into losses for the meme coin.
Shiba Inu Whales Are a Problem
Shiba Inu’s price could experience a price correction due to the waning support from SHIB holders. These meme coin enthusiasts have been losing optimism toward a rally, which is visible in their increasing selling pressure.
In the last two months, the addresses holding more than $1 million and $10 million worth of SHIB have sold off a huge chunk of their supply. Nearly $10 billion worth of SHIB has left their wallets, creating a bearish impact on the meme coin.
Such major selling tends to counter any potential an asset has at rallying, which could be the case with Shiba Inu.
Shiba Inu Whale Holdings. Source: IntoTheBlock
Furthermore, the correlation this meme coin shares with Bitcoin also threatens its gains. SHIB shares a high correlation of 0.81 with BTC. A high correlation indicates a strong statistical relationship between the two assets. This implies that changes in one of them are closely associated with changes in the other.
Given Bitcoin is the bigger asset and is also noting bearish cues, it is difficult to predict a bullish outcome for Shiba Inu. Thus, there is a good chance that the meme coin could have a bearish weekend.
Shiba Inu Correlation with Bitcoin. Source: IntoTheBlock
SHIB Price Prediction: Support Could Fail
Shiba Inu’s price has been trading under a downward trendline for the most part since the beginning of March. Even though the meme coin attempted breakouts in the past, it failed to retain the rally.
Consequently, SHIB is now threatened to fail the breach of the downtrend line and fall back to $0.00002093. Losing this support would result in a significant correction to $0.00001491.
Shiba Inu Price Analysis. Source: TradingView
Shina Inu must print a daily candlestick close above $0.00002584 to invalidate the bearish thesis. Such upward movement could break the descending trendline SHIB has maintained since March and push prices toward $0.00002835 or higher.
