On-chain data shows that Shiba Inu (SHIB) has witnessed a large decline in whale activity. This is important for the meme coin’s ecosystem, considering the impact these investors normally have on Shiba Inu’s price.
Shiba Inu’s Whale Activity Declines By Over 100%
Data from the market intelligence platform IntoTheBlock shows that Shiba Inu’s whale activity has declined by over 100% within the last seven days. This relies on the massive holders’ netflow metric, which indicates when these whales are adding to their positions or offloading their tokens.
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Source: IntoTheBlock
The 100% decline in large holders’ netflow points to these whales opting against accumulating and selling their Shiba Inu tokens as a substitute. The massive holders’ outflow metric also points to those whales offloading their tokens, as there was an 18% increase in the quantity of Shiba Inu tokens leaving these whales’ addresses within the last seven days.
Source: IntoTheBlock
Meanwhile, in the identical period, there was an almost 23% drop within the large holder inflows, which suggests that more whales are opting against adding their Shiba Inu positions. That is evidently bad for the Shiba Inu ecosystem as significant selling pressure from these whales could further make the meme coin’s price tumble.
Source: IntoTheBlock
Other on-chain metrics also paint a bearish outlook for the meme coin. As an example, data from IntoTheBlock shows that the ‘In The Money’ metric is bearish, as 52.46% of Shiba Inu addresses are currently at a loss. This might pile more selling pressure on the meme coin as more investors look to chop their loss, fearing that Shiba Inu could further decline from its current price level.
Source: IntoTheBlock
Shiba Inu also risks losing a lot of the gains it made earlier this 12 months if it fails to carry above its current support level. The Within the Money metric shows that the majority addresses currently invested in Shiba Inu bought the meme coin at its current price range. As such, a decline below this range could send the crypto token on a free fall to levels not seen shortly.
Bitcoin Making Matters Worse For Shiba Inu
Data from IntoTheBlock shows that Shiba Inu has a strong positive price correlation with Bitcoin. This has also significantly contributed to the downtrend that the meme coin is currently facing. SHIB’s price correlation with Bitcoin appears to be why the second-largest meme coin by market cap has been probably the most affected because the flagship crypto dropped below its crucial support level at $60,000.
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Shiba Inu’s price correlation with Bitcoin suggests that things could worsen for the meme coin. The flagship crypto remains to be facing intense selling pressure and is liable to further price declines in the approaching days.
SHIB is currently trading at around $0.00001327, down over 14% within the last 24 hours, in response to data from CoinMarketCap.
SHIB price recovers from drop | Source: SHIBUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com