Are Crypto Whales Dumping Shiba Inu for Trump’s Memecoins?

Shiba Inu price tumbled towards $0.0000021 on Wednesday Jan 22, reflecting 15% losses on the weekly timeframe. On-chain data shows the recent market dip has coincided with a considerable decline in whale demand for SHIB, as newly-launched memes linked to Donald Trump drew investor attention.

Shiba Inu Price Risks $0.0000020 Breakdown as Trump’s Memes Encroach Market Share

Shiba Inu (SHIB) delivered underwhelming price action on Wednesday,January 22, while cryptocurrency assets like TornadoCash, Solana, and Dogecoin gained significant traction.

Despite broader interest in the cryptocurrency market, SHIB struggled to maintain investor attention amidst a rapidly evolving memecoin landscape.

Since Donald Trump’s inauguration, the aggregate memecoin market capitalization surged significantly, surpassing the $117 billion mark on Wednesday, according to Coingecko data.

This notable increase highlights the resurgence of interest in memecoins, particularly those tied to timely and relevant narratives.

However, investors have navigated this resurgence selectively. TRUMP’s newly launched $TRUMP and MELANIA tokens epitomize this trend, soaring to peak market capitalizations of $8.4 billion and $755 million, respectively.

These tokens’ rise is underpinned by substantial search interest on Coingecko, as illustrated in the chart above, cementing their position among the top trending assets in the market.

Likewise, OpenAI’s recent announcement of a $500 million investment in AI infrastructure has shifted attention toward AI-themed memes. Tokens like Ai16z and Pudgy Penguins have ridden this wave, drawing significant investor interest over the past weeks.

In contrast, legacy memecoins like Shiba Inu have struggled for momentum.

Without a strong narrative linking them to trending themes like Trump’s presidency, SHIB has faced adverse impacts. The chart above underscores how Shiba Inu has lost market share to newer, narrative-driven memes.

Since the week began on January 19, SHIB price has declined by 15.8%, hovering precariously above the $0.0000020 mark as of January 22.

This sustained downtrend poses a risk of further breakdown unless SHIB re-establishes relevance in the fleeting and highly competitive memecoin media trends-tables

SHIB Whale Transactions Declined 49% after Trump’s Inauguration

Evidently Shiba Inu’s 15.8% loss performance, amid double-digit gains for DOGE, TRUMP, MELANIA, Ai6z and other trending memecoins, means that SHIB has lost significant market dominance this week.

While media narrative has been evidently skewed against SHIB, a closer look at on-chain data trends, shows whale investors’ waning confidence has also contributed to the recent price dip.

Emphasizing this stance, IntoTheBlock’s Whale Transaction count chart below presents the daily count of SHIB trades that exceed $100,000 in value on a given day.

This serves as a proxy for tracking real-time changes in whale investors sentiment, around key market events.

The Shiba Inu blockchain network recorded 629 whale transactions on January 19. But since Donald Trump launched the $TRUMP and $MELANIA, the SHIB whales appear to have shifted focus elsewhere, dampening market momentum.
The chart above shows that whales conducted only 320 transactions on January 21, reflecting a 49% decline in institutional demand.

Such a sharp decline in whale demand could trigger bearish price action, as the dearth in large volume orders from whales thins out the market supply, heightening risks of rapid declines as panic sellers seek to exit.

In summary, Shiba Inu’s current price dip can be attributed to the 49% decline in whale interest amid skewed media dominance by DOGE, AI-agents and Trump’s newly meme meme tokens.

Shiba Inu Price Forecast: Bearish Momentum Clouds $0.000020 Support Zone

Shiba Inu price forecast paints a bearish-leaning picture raising the risk of breakdown below $0.0000020.

The 15.5% SHIB price decline over the past four days highlights growing downward pressure, as reflected by the steep red candlestick formations on the chart.

The narrowing Bollinger Bands indicate a potential volatility breakout, while the lower boundary at $0.00001818 signals a key support level for traders to watch.

From a bearish perspective, SHIB’s failure to hold above $0.000020 suggests diminishing buyer confidence.

The high trading volume accompanying recent declines underscores increased sell-side activity, which could drive prices toward the $0.00001818 lower support band.

A breakdown below this level might accelerate panic selling, potentially dragging SHIB toward $0.00001500—a zone with historical trading interest.

Conversely, a bullish rebound could occur if SHIB manages to reclaim the midline of the Bollinger Bands at $0.00002189. This would signal a potential reversal, supported by lower selling volumes.

However, without a compelling narrative or renewed whale interest, any recovery is likely to remain short-lived.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.