Shiba Inu, a well-known meme coin, is currently experiencing a renewed downward trend. Its price has been falling over the last 24 hours and through the past week. Adding to these concerns, there’s on-chain data indicating a substantial drop in large transactions, which brings up questions about declining whale activity. Recent insights from IntoTheBlock show a notable reduction in both the number and volume of significant transactions within the Shiba Inu network, hinting at either a dip in investor confidence or possibly a lull in market momentum.
Shiba Inu’s Major Transaction Activity Drops by 61%
IntoTheBlock’s on-chain analytics have shed light on intriguing patterns among major Shiba Inu holders. Their activity, particularly that of large-scale investors known as whales, has noticeably decreased in the last day.
This shift is evident through IntoTheBlock’s Large Transactions metric, focusing on activities involving transactions valued at $100,000 or more. This measure serves as an insightful gauge of market mood by reflecting the actions of big-time investors, whose moves can heavily influence retail investor behavior.
Typically, an increase in large transactions signals rising confidence and accumulation, whereas a marked decrease, such as the one seen recently, can indicate a turn towards caution. Thus, the current drop in large transactions suggests that investors might be cashing out or playing it safe.
Over the last 24 hours, the number of significant transactions has nosedived from 353 to just 136, marking a steep 61% drop. This could mean that many key holders are opting out of the market, possibly due to dwindling optimism.
Moreover, not only did the number of substantial transactions decline, but the total volume linked to these major trades also suffered. IntoTheBlock’s data indicates a roughly 55% reduction in the volume of SHIB transacted in these high-value exchanges, slipping from 6.81 trillion SHIB to 3.05 trillion SHIB. In dollar terms, this represents a 58% fall, plummeting from $128.95 million to $54.74 million.
Implications for SHIB’s Price
The sharp decrease in large transactions could significantly impact Shiba Inu’s price, especially in the near term, unless whale activity picks up quickly. This drop in whale actions is already manifesting in a price reduction for the coin, which has fallen by 2.7% over the past day and 9.5% over the week.
Shiba Inu has slipped below support at $0.000020 but is still holding above the next support level of $0.000018. There’s a lingering threat of further price losses below $0.000018 if whale activity continues to dwindle. Absent a resurgence of interest from these major players, SHIB’s price might keep sliding lower, left more exposed to market fluctuations and bearish sentiment due to the lack of substantial buy orders.
Featured image from Adobe Stock, chart from Tradingview.com
