Shiba Inu (SHIB) has shown early signs of a potential bounce after weeks of relentless selling pressure. The meme token printed a modest recovery candle near the $0.0000043-$0.0000044 support zone, signaling that buyers are attempting to defend recent lows. Although the asset remains in a firm downtrend below all major moving averages, the combination of declining selling volume and an oversold RSI suggests a local relief rally could be brewing. However, technical obstacles at $0.0000049-$0.0000050 and the 50-day and 100-day moving averages remain as formidable resistance.
Adding to the intrigue, on-chain data reveals that a SHIB whale from the 2020 era has moved nearly 600 billion tokens—worth about $2.83 million—after years of dormancy. The wallet, which originally bought 17.4% of SHIB's total supply in August 2020 for just $13,752, saw its position balloon to $9.1 billion during the 2021 peak. The recent transfer to a ForwarderV4 address has sparked speculation of distribution, with some reports indicating the holder has begun selling. While the transfer alone does not confirm a full-blown dump, it serves as a cautionary signal for traders, particularly as large whale sales could add supply pressure in a fragile market.
Together, these events paint a mixed picture for SHIB. The technical bounce setup offers hope for bulls, but the whale's activity threatens to inject more supply. Traders are watching whether follow-through buying can push SHIB above immediate resistance levels, or if the whale's moves will cap any upside. For now, the meme coin’s fate hangs in a delicate balance between a possible relief rally and the risk of renewed downward pressure.
