Shiba Inu Faces Mounting Sell Pressure as Two Key Groups Dump Holdings

Shiba Inu’s price action takes a hit as whales and retail traders offload tokens en masse—just when the memecoin needed momentum most.

Whales bail first: Large holders slash positions, triggering a domino effect. Retail traders follow suit, because nothing inspires confidence like panic-selling at the bottom.

Market impact: Liquidity pools swell with SHIB supply, while buyers remain scarce. Another day in the circus of speculative crypto assets.

Closing thought: If ‘community-driven’ projects crumble the moment early adopters cash out, maybe the community wasn’t the real product after all.

Source: IntoTheBlock

Such a massive outflow from large holders indicates increased selling activity from the cohort, reflecting strong bearish sentiments.

Usually, when whales turn to extreme offloading, it indicates a lack of confidence in the market as they expect prices to decline.

However, these selling activities are not isolated to whales only.

Sell-side pressure spreads across all cohorts

On the contrary, it seems all market participants are following suit and are also selling.

Source: Coinalyze

For instance, looking at Shiba Inu’s Buy/Sell Volume, SHIB recorded a negative order imbalance of 134.15 billion. Overall, there are 1.2 trillion tokens sold.

A negative imbalance here suggests that sellers are dominating the market, with more sell orders being executed.

Source: Santiment

On top of that, Shiba Inu’s Exchange Flow balance turned positive, now holding at 5.3 million SHIB.

A positive flow balance means there are more deposits into exchanges than withdrawals. Usually, flow into exchanges means selling, as holders are sending these tokens to sell.

Source: CryptoQuant

Netflows confirm sustained bearish pressure

This trend is further confirmed by a positive Exchange Netflow that has remained so over the past two days.

On the 2nd of May, Shiba Inu (SHIB) recorded a positive Netflow of 231 billion; it has since settled at 21 billion SHIB tokens.

This implies that over the past two days, there has been a netflow of 252 billion tokens, reflecting a massive exchange inflow.

Historically, such trends—rising exchange inflow and outsized sell pressure—have preceded sharp price declines. Simply put, the token supply is outweighing demand, setting the stage for inflationary effects on price.

If this continues, SHIB may witness deeper corrections in the NEAR term.

Any impact on Shiba Inu?

As expected, a higher selling activity has negatively impacted Shiba Inu’s price action. Inasmuch, the memecoin has experienced a sharp decline on its price charts.

In fact, at press time, SHIB traded at $0.00001324, down 8.4% on the weekly chart and 1.84% over the last 24 hours.

The continued decline reflects strong bearish sentiment in the market that positions the memecoin at a risky point. If sellers continue to dominate, SHIB could drop to $0.00001274.

However, if buyers reenter the market and challenge the bears, the memecoin can reclaim $0.00001397.

For this bullish outlook to hold, the memecoin needs a daily close above $0.00001376.