Shiba Inu, the second largest meme coin, has been experiencing sideways price movement over the past 30 days, with a notable decline in the last seven days. On-chain data suggests this downward trend may continue in the near term due to increasing selling pressure. Recently, significant holders of Shiba Inu have transferred a substantial amount of SHIB tokens, including 4.92 trillion SHIB moved to the cryptocurrency exchange Coinbase.

The movement of these tokens to Coinbase potentially indicates an impending sell-off, contributing to the overall selling pressure on SHIB. In the broader cryptocurrency market, major cryptocurrencies like Bitcoin and Ethereum have also witnessed price declines, with Bitcoin dropping over 2% in the past 24 hours and more than 5% over the last seven days.

The recent downturn in cryptocurrencies was partly influenced by the U.S. May Jobs report, which revealed an uptick in the unemployment rate. Shiba Inu saw a significant price drop of up to 10% recently, exacerbated by large transactions observed on-chain. According to OnchainDataNerd, 10 whale wallets deposited 4.29 trillion SHIB tokens into Coinbase, worth approximately $97.33 million at the time of transfer. This influx onto Coinbase provides whales an avenue to sell their holdings, potentially intensifying sell pressure.

OnchainDataNerd also noted that the transaction patterns from these whale wallets suggest they may be controlled by the same entity. These tokens were accumulated between September 2021 and March 2024 at an average entry price of $0.00001309. With SHIB's current trading price above $0.000022, a complete sell-off could yield a profit of $41.22 million for these whales.

As of now, SHIB is trading at $0.00002217, reflecting a 15.10% decline over the past seven days. The cryptocurrency has tested support levels at $0.00002117 multiple times recently, indicating vulnerability to further declines amidst ongoing selling pressure. To reverse this trend, SHIB needs sufficient buying activity to absorb the excess supply in the market.

Despite the short-term challenges, there's optimism fueled by an increase in the Shiba Inu burn rate, which rose by 68,000% in the past 24 hours. This suggests that selling pressure could subside soon. Analysts foresee a potential rebound for SHIB, with predictions of it surging to $0.00024, marking an 1,100% increase from its current levels, in the longer term.