Shiba Inu Price Faces Bearish Crossover, But Whale Activity Offers Hope

The Shiba Inu price has been under pressure recently, reflecting broader weakness in the memecoin sector. 

While short-term technicals suggest a continuation of the bearish trend, deeper analysis reveals that large wallet holders and capital inflows may be building a quiet foundation for recovery.

In this article, we break down the latest Shiba Inu price trends, the impact of the SHIB bearish EMA crossover, the significance of declining activity, and the key SHIB support and resistance levels investors need to watch.

Shiba Inu Price Declines: The Bearish Setup

Over the past month, Shiba Inu has slipped more than 17%, erasing gains from earlier in the summer. On a daily scale, the token is down 0.6%, showing muted activity compared to broader altcoin volatility.

The immediate challenge for SHIB is clear: technical breakdowns are aligning with falling network activity. 

Daily active addresses have dropped to around 3,148, nearing record monthly lows. Historically, rising address activity has preceded recoveries, while declines have foreshadowed extended downtrends.

This reduction in SHIB active addresses signals fading retail interest, a concern for a token heavily dependent on community participation and speculative enthusiasm.

Read Also: Shiba Inu Team Issues Urgent Security Alert to SHIB Army

SHIB Bearish EMA Crossover Signals Warning

From a technical perspective, SHIB just flashed a major red flag. The 20-day exponential moving average (EMA) has crossed below the 50-day EMA, forming a bearish crossover.

Why does this matter? EMA crossovers often signal the beginning of a stronger trend in the direction of the cross. In this case, the bearish crossover suggests continued downside risk.

SHIB trades below the $0.00001259 support and is hovering near $0.00001247. If bears maintain control, the next SHIB support levels to watch are $0.00001215 and $0.00001160. Both levels are critical for preventing a deeper correction.

On the upside, only a decisive move above $0.00001320 would invalidate this bearish outlook and restore short-term bullish momentum.

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Whale Accumulation and Capital Inflows Provide a Contrarian Signal

Despite weak retail activity, larger holders are showing renewed interest in SHIB. The top 100 Shiba Inu wallets have accumulated nearly 21 trillion tokens over the past 90 days.

This aligns with a positive reading from the Chaikin Money Flow (CMF) indicator, which remains above zero. A positive CMF means net capital inflows are still entering SHIB, often a sign of accumulation by whales even as smaller holders exit.

Such accumulation suggests that while the SHIB bearish EMA crossover points to near-term risks, longer-term investors may see value at current levels.

Read Also: Shiba Inu Burn Rate Rockets 48,000%: What This Means for SHIB Price and Supply

SHIB Support and Resistance Levels to Watch

For traders and investors, understanding the SHIB support and resistance levels is crucial in navigating the current market environment.

• Immediate support: $0.00001215
• Deeper support: $0.00001160
• Immediate resistance: $0.00001259 (previous support turned resistance)
• Key breakout resistance: $0.00001320

If Shiba Inu holds above $0.00001215 and whale accumulation continues, the token could attempt a rebound. Conversely, a clean break below $0.00001160 would likely accelerate selling pressure.

The Bigger Picture: Ecosystem and Sentiment

Beyond price charts, ecosystem health is showing cracks. Shibarium transactions have declined 22% and the SHIB burn rate has plunged by 98%, removing one of the bullish narratives that previously supported sentiment.

However, strategic whale accumulation indicates that some investors may be looking past short-term weakness and preparing for a potential bounce once broader market conditions stabilize.

Read Also: You Don't Know What Shibburn Is? Here's the Explanation in One Read

Conclusion

The Shiba Inu price is at a pivotal point. On one side, the SHIB bearish EMA crossover, falling active addresses, and declining ecosystem activity highlight downside risks. 

On the other, consistent inflows and accumulation by top wallets provide a cushion that could set the stage for recovery.

Investors should closely watch the SHIB support and resistance levels, as price action around these zones will likely determine whether the current decline deepens or stabilizes.

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FAQ

What does the SHIB bearish EMA crossover mean?

The bearish EMA crossover happens when the 20-day EMA crosses below the 50-day EMA, signaling potential downside momentum. For Shiba Inu, this indicates near-term risks of further declines.

Why are SHIB active addresses important?

Active addresses represent user engagement and transaction activity. A decline often suggests waning interest, while surges in addresses typically precede bullish moves.

What are the key SHIB support and resistance levels?

Immediate support sits at $0.00001215, with deeper support at $0.00001160. Resistance lies at $0.00001259 and $0.00001320. Holding above these supports is critical for Shiba Inu’s short-term stability.

Are whales still buying Shiba Inu?

Yes. The top 100 SHIB wallets have accumulated around 21 trillion tokens in recent months. This whale accumulation reflects longer-term confidence despite bearish short-term signals.