Shiba Inu (SHIB), one of the most talked-about cryptocurrencies, is currently facing significant market pressure as large-scale holders, often called whales, begin moving massive amounts of tokens. Recently, a dormant whale—an investor who had been inactive for a long period—transferred an astonishing 100.45 billion SHIB tokens, worth approximately $1.21 million, to the Binance exchange. Around the same time, over 3.6 trillion SHIB tokens valued at $43.6 million were moved to Coinbase Institutional. These large transfers happening within hours have led many analysts and traders to speculate that major holders might be preparing to exit or redistribute their SHIB assets.

Historically, when dormant wallets suddenly become active, it often signals a shift in market sentiment or the start of distribution phases where big players sell off their holdings. The timing and scale of these recent transfers suggest that whales could be offloading their SHIB, especially as retail interest appears to be retreating. This combination creates a fragile environment where the price may struggle to hold important support levels.

In addition to whale activity, retail participation seems to be waning. Transaction data reveals that smaller trades, particularly those under $10, have decreased by about 12%. Meanwhile, transfers involving larger amounts—ranging between $100,000 and $1 million—have surged by over 1,600%. This stark contrast highlights a shift in market dynamics: while large investors continue moving significant amounts of SHIB, everyday investors seem to be pulling back or hesitating to buy. This situation is often seen during distribution phases when smart money exits, and smaller investors lose confidence or interest.

As a result, Shiba Inu’s price is hovering near a critical support zone. Currently, SHIB trades close to $0.00001225, just above a historically significant demand level near $0.00001028. This support line aligns with a key Fibonacci retracement level, an important technical tool used by traders to identify potential price floors. Although some technical indicators, like the Stochastic RSI, suggest that SHIB is oversold and might be due for a short-term bounce, the overall momentum remains bearish. If the price falls below this support, the next major level could be near $0.00000573, representing a much deeper retracement and a considerable decline from current prices.

Another piece of the puzzle is the decline in SHIB’s exchange reserves. These reserves represent the total number of tokens held on cryptocurrency exchanges and can indicate the potential selling pressure in the market. Recently, exchange reserves for SHIB dropped by around 4.11%, bringing the total value of tokens held on exchanges down to roughly $1.076 billion. While fewer tokens on exchanges might suggest less immediate selling pressure, it doesn’t necessarily mean the market is turning bullish. The reserve drop could also be due to whales moving their tokens to cold storage wallets, removing them temporarily from circulation. Combined with the ongoing bearish price action, the decline in reserves adds complexity to interpreting the current state of SHIB’s market.

The outlook for Shiba Inu is further complicated by rising short interest among traders. The funding rate on SHIB futures contracts has recently turned negative, meaning traders are paying to hold short positions. This scenario points to a growing bearish sentiment as more market participants bet on the price falling. Although persistent negative funding rates can sometimes precede sharp downward price moves, they can also lead to short squeezes, where a rapid price increase forces short sellers to cover their positions, pushing prices higher temporarily. At the moment, liquidation data suggests minimal forced exits from either long or short positions, indicating that traders may be avoiding heavy leverage or have already reduced it significantly. This means that SHIB might not see explosive price moves in the immediate future, as there is little forced pressure driving the market.

Looking ahead, Shiba Inu stands at a crucial crossroads. The combination of whale activity, reduced retail involvement, and rising short bets paints a bearish picture. However, the fact that the price is currently sitting near a strong demand zone with oversold technical conditions and falling exchange reserves leaves room for a possible short-term rebound. Whether SHIB bounces back or breaks below its support level will depend heavily on buyer reaction in the coming days.

If buyers step in to defend the $0.00001028 zone, it could trap bearish traders and generate some relief in the market. Conversely, if the price fails to hold this level, it might accelerate the decline, potentially pushing SHIB toward much lower Fibonacci retracement levels that haven’t been tested in a while. Investors should watch this key support closely and monitor market sentiment before making major moves.

In summary, Shiba Inu’s current market environment is marked by significant whale movements, declining retail enthusiasm, and rising bearish sentiment. The price now faces a make-or-break moment as it tests important technical support. This phase could define SHIB’s direction in the near term, so traders and investors would do well to stay alert to developments in the coming days.