Here’s why Shiba Inu could wipe out 7% as whales ditch SHIB

• Large Shiba Inu wallet investors lost their SHIB token holdings in the last 30 days.
• Retail investors continue to accumulate SHIB over the same timeframe.
• SHIB could correct 7% and sweep liquidity to $0.00001576 in its decline.

Shiba Inu (SHIB), the second largest meme coin in the crypto ecosystem, is up slightly and is trading at $0.00001710 at the time of writing on Thursday after a three-day decline. Chain and technical indicators signal that a further correction is possible in meme currency.

SHIB could sweep liquidity to $0.00001576, the lowest since August 5 for the meme coin.

Shiba Inu could correct for these reasons

Large Shiba Inu wallet investors holding between 100 million and 1 billion SHIB tokens divested their holdings between September 10th and October 10th. Over the past 30 days, there has been a steady decline in SHIB holdings of various cohorts of holders.

Retail investors holding small amounts continued to accumulate over the same time frame, according to Santiment data.

Owns Shiba Inu of different wallet addresses

Typically, a decline in the holdings of large wallet investors is considered bearish for an asset.

Shiba Inu could correct 7%

The Shiba Inu broke out of a multi-month downtrend on September 12, as seen in the daily SHIB/USDT chart below. The meme coin could sweep liquidity at the lower end of the fair value gap (FVG) between $0.00001576 and $0.00001855.

The drop marks a 7.83% loss from the current level of $0.00001710. Below, SHIB could find support at the August 5 low of $0.00001078 if the decline is prolonged.

The MACD (Moving Average Convergence/Divergence) indicator is flashing red histogram bars below the neutral line, signaling an underlying negative momentum in the SHIB price trend.

SHIB/USDT Daily Chart

A daily candlestick close above FVG’s upper limit at $0.00001855 could invalidate the bearish thesis. In this case, Shiba Inu could target a return to the September 27 high of $0.00002169.