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The price of Shiba Inu (SHIB) has faced sustained selling pressure over the past month, slipping by more than 17%. While short-term signals continue to indicate weakness, large investors appear to be quietly increasing their holdings — suggesting that the token’s current bearish trend may not tell the full story.
Short-Term Weakness Continues
At the time of writing, SHIB is trading around $0.00001247, marking a slight 0.6% dip in the past 24 hours. While this daily decline seems modest, it forms part of a broader downward trajectory that has developed through August.
One of the most notable signals of weakness comes from the exponential moving averages (EMAs). On the daily chart, the 20-day EMA has crossed below the 50-day EMA — a bearish crossover that traditionally points to potential deeper corrections. Unless SHIB can reclaim key resistance levels, this technical pattern suggests that more downside could be ahead.
Currently, SHIB trades just below the $0.00001259 support, a level that has now flipped into resistance. If the downward momentum continues, the next key support levels appear at $0.00001215 and $0.00001160. Only a decisive break above $0.00001320 would reverse this bearish setup and restore short-term bullish momentum.
Network Activity Paints a Cautious Picture
Beyond price action, on-chain activity provides further evidence of cooling demand. Daily active addresses for SHIB have steadily declined, now hovering near monthly lows at around 3,148. This is only slightly above the month-to-month bottom of 3,130, suggesting diminished engagement among retail participants.
Historically, increases in active addresses have often preceded upward price moves. The sharp uptick between August 6 and 8 was followed by a price rally, underlining how closely network activity and market momentum can be linked. However, the recent stagnation highlights fading enthusiasm in the near term.
Additionally, the Bull-Bear Power (BBP) indicator — which measures whether buyers or sellers hold more influence — shows rising selling pressure. This reinforces the view that bears currently control the market, leaving the token vulnerable to further corrections.
Positive Inflows Offer a Contrasting Signal
Despite these bearish developments, not all indicators point to weakness. The Chaikin Money Flow (CMF), which tracks capital inflows and outflows, remains above the zero line. This suggests that significant buying activity continues even as overall sentiment weakens.
The CMF has also been forming higher lows, signaling that net inflows are increasing. This typically happens when large investors or “whales” accumulate during periods of price softness. Such behavior can provide stability and set the stage for potential rebounds if retail demand eventually returns.
Top 100 Wallets Strengthen Their Positions
One of the strongest signs of accumulation comes from the top 100 SHIB wallets. According to blockchain data, these addresses have added nearly 21 trillion SHIB over the past 90 days. This substantial inflow reflects confidence among larger holders, even as smaller traders reduce their exposure.
Whale accumulation has historically been a precursor to upward movements in many digital assets. When large investors increase their positions during downturns, it often signals that they view current price levels as attractive entry points. In SHIB’s case, this accumulation could provide a cushion against further declines and increase the chances of recovery once broader sentiment improves.
The Road Ahead: Bearish Risks vs. Long-Term Confidence
For now, the immediate outlook remains tilted toward the downside. With EMAs signaling weakness, active addresses in decline, and support levels under pressure, SHIB faces technical hurdles that may take time to overcome.
However, the ongoing inflows and accumulation by top wallets suggest that underlying confidence in the asset has not disappeared. Instead, large investors appear to be positioning for a longer-term recovery, even as retail participation stalls.
If SHIB can defend the $0.00001215 level and avoid deeper losses toward $0.00001160, stability could return in the coming weeks. A strong bounce above $0.00001320 would be the first sign that bearish momentum is weakening, potentially opening the door for renewed upward movement.
Conclusion
Shiba Inu’s price action is caught between short-term weakness and longer-term confidence. On one hand, declining network activity and bearish technical signals indicate that risks remain elevated. On the other, steady inflows and accumulation by the top 100 wallets highlight that some investors are treating the current pullback as a buying opportunity.
As the market weighs these opposing forces, SHIB’s performance in the coming weeks may depend on whether retail participation returns to support the optimism shown by larger holders. Until then, caution remains warranted, but the quiet accumulation at the top end suggests that the longer-term story is far from over.
