Shiba Inu (SHIB) is at risk of falling deeply as whales withdraw capital.

Shiba Inu (SHIB) continues the downtrend at the time of writing on Friday, after losing nearly 5% this week. On-chain data shows that the correction may not be over yet, as the wave of selling from SHIB investors is increasing amid escalating tensions between Iran and Israel. Technically, the downtrend still dominates, putting heavy pressure on the bounce back of SHIB's price.

The trust of SHIB investors is wavering amid Iran-Israel tensions

The conflict lasting over a week between Iran and Israel, combined with concerns surrounding U.S. President Donald Trump's controversial tax policy, continues to cast a shadow over risk appetite in global markets. In the context of the widespread "risk avoidance" sentiment, the cryptocurrency market has become a direct victim, especially meme coins like Shiba Inu (SHIB) – which are highly speculative and most vulnerable during sell-off waves.

The actual profit/loss index (Net Profit/Loss – NPL) provided by Santiment shows that SHIB investors are rushing to cut losses, reflecting a significant decline in market confidence. Specifically, within just two days, Sunday and Monday, this index plummeted from -346,000 to -211.2 million – the deepest drop since March 2024. This trend indicates that selling pressure is rapidly increasing and could push SHIB prices to continue sliding.

! shib-jailShiba Inu NPL Chart | Source: SantimentIn addition, the Supply Allocation data from Santiment also sent a negative signal when the number of whale wallets dropped significantly. The wallet group holding between 100,000 and 1 million SHIB (đường đỏ) and between 10 million and 100 million SHIB (đường xanh) both recorded a trend of retreat from Wednesday to Friday. The retreat of large investors further strengthens the scenario that the SHIB price continues to be under pressure in the short term.

Shiba Inu Supply Distribution Chart | Source: Santiment## Shiba Inu Price Forecast: Sellers in Control

On the daily timeframe, the technical chart of SHIB shows that this coin has been rejected at the (EMA) 50-day exponential moving average — coinciding with the downtrend line connecting the peaks since mid-May. Since June 13, SHIB has plunged nearly 14% until Tuesday, before bouncing back slightly on Wednesday after finding support around the $0.000011 level. As of the time of writing on Friday, SHIB is still in a correction phase and fluctuating close to this important support zone.

If it cannot hold the level of $0.000011 at close, SHIB may continue to fall deeper, with the target to retest the bottom of April 9 at $0.000010.

Technical indicators are leaning heavily towards the bears. The RSI is currently at 34 and is gradually sliding towards the oversold zone, reflecting a clear weakening in momentum. At the same time, the MACD indicator on the daily chart generated a bearish crossover last week, while the red histogram bars continue to expand below the 0 threshold — further reinforcing the negative outlook for SHIB in the short term.

! Daily SHIB/USDT Chart | Source: TradingViewObserving the weekly chart, SHIB is sending negative signals. Since mid-May, this meme coin has experienced a series of 6 consecutive weeks of closing in the red, and this week alone, the price has dropped by nearly 5%. The RSI is currently at 39 – below the neutral threshold of 50 – indicating that the bears are clearly dominant. Besides, the MACD indicator on the weekly timeframe is also approaching the cut-off point, a potential sign that the price of SHIB continues to slide.

Weekly chart SHIB/USDT | Source: TradingViewIn the case of a prolonged correction trend, SHIB may retreat to the next important support zone around $0.000011. Conversely, if buying pressure returns and creates a bounce back, SHIB will have the opportunity to retest the nearest weekly resistance zone at $0.000013.

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