- SHIB’s RSI at 43.93 and MACD bearish crossover show weakening momentum and limited investor enthusiasm.
- 74% of SHIB is held by whales, with 59% of holders at a loss, increasing sell pressure on any price rallies.
- Analyst Javon Marks reaffirms $0.000081 target, citing hidden bullish divergence and a strong base above $0.0000108.
On May 6, at the time of writing, Shiba Inu (SHIB) was trading at $0.00001254, a 2.80% daily decline. Weekly losses are at 8.56%, while monthly gains are at 3.25%. The market cap has dropped by 2.77% to $7.39 billion, even as trading volume surged by 16.24% to $141.34 million.
SHIB’s fully diluted valuation aligns with the market cap at $7.39 billion. The volume to market cap ratio held at 1.9%, shows moderate turnover. Shiba Inu currently has 1.50 million holders, with a circulating supply of 589.24 trillion tokens out of a total supply of 589.5 trillion.
Whale Holdings and Holder Behavior
As per from IntoTheBlock, 74% of the SHIB supply is concentrated in large holders. This high concentration indicates potential price volatility if large transactions occur. On-chain data further shows that 78% of holders have kept their positions for over a year.
Another 20% held between one to twelve months, while just 2% are recent entrants. These numbers indicate a long term investor base. However, despite this loyalty, 59% of holders remain at a loss, while only 37% are in profit and 4% are at break-even.
This imbalance could lead to selling pressure during price rallies. SHIB maintains a strong correlation of 0.85 with Bitcoin, suggesting the asset closely follows BTC’s broader market moves. Large transaction volumes are at $184.96 million in the past seven days, indicating some whale activity.
Bearish Momentum and Weak Buying Interest
The RSI is at 43.93, suggesting weak buying momentum as it remains under the neutral 50 mark. The MACD indicator also shows a bearish market.
The MACD line is at 0.00000007, below the signal line at 0.00000019. The histogram continues to decline, indicating fading momentum. Trading activity also is subdued, with a daily volume of 469 billion SHIB.
This limited engagement shows reduced retail or institutional interest. Support is at $0.00001200, a psychological level. A break below this could test $0.00001050. On the upside, price faces resistance at $0.00001450, where sellers blocked rallies twice in April.
Burn Rate Surge and Analyst Viewpoint
Burn activity saw a sharp increase, with 16.77 million SHIB burned in the past 24 hours, up by 656.15%, according to Shibburn. Over the past week, 329.95 million tokens were removed from circulation, a 352.04% rise.
This could contribute to gradual supply tightening if the trend continues. Meanwhile, crypto analyst Javon Marks reaffirmed a bullish long-term projection of $0.000081 for SHIB. Marks noted a confirmed retest at $0.0000108 and a hidden bullish divergence in recent price moves.
He emphasized higher lows in price against lower lows in indicators like RSI and MACD. He points to sustained buying pressure despite current weakness.
If SHIB breaks above $0.00001450 with strong volume, price could rise toward $0.00001900 to $0.00002550 in May. However, a drop below $0.00001200 may open downside targets at $0.00001050 or, more severely, $0.00000900.
