Shiba Inu Faces Selling Pressure as Whale Holdings Come Under Scrutiny

Shiba Inu's recent price recovery has been tempered by continued selling pressure from large holders, known as 'whales'. According to data from Santiment, wallets containing between 1 million and 10 million SHIB have sold a combined 40 billion tokens since August 22.

This selling, coupled with weakening derivatives data, suggests that traders remain cautious about the short-term outlook for Shiba Inu. The token's long-to-short ratio of 0.93 signals bearish positioning in the derivatives market.

However, smaller whales have accumulated approximately 990 million tokens during the same period, indicating a transfer of supply from larger holders to smaller participants.

Shiba Inu continues to hold above its 50-day exponential moving average, but growing selling pressure could increase the risk of another decline. A decisive daily close below this level would weaken the recovery and could expose the token to a deeper correction.