Meme coin Shiba Inu is facing renewed downward pressure, with its price reflecting a decline in each the 24-hour and seven-day timeframes. Moreover, on-chain data reveals the same trend of a significant drop in large transactions, raising concerns about waning whale activity. The most recent figures from IntoTheBlock show a pointy decline in each the number and volume of enormous transactions throughout the Shiba Inu ecosystem, which signals reduced investor confidence or temporary market stagnation in the approaching days.
Shiba Inu Large Transactions Suffer 61% Crash
Recent data sourced from on-chain analytics platform IntoTheBlock opens up interesting dynamics amongst large addresses holding Shiba Inu. These interesting dynamics are none apart from whale activity, which has taken a serious hit previously 24 hours.
The trend amongst large Shiba Inu addresses is revealed through IntoTheBlock’s Large Transactions metric, which tracks data surrounding transactions with a price of $100,000 or greater. This metric serves as a priceless tool for assessing market sentiment, because it captures the movements of high-value investors, whose actions often influence the behavior of retail traders.
An increase in large transactions is usually related to growing confidence and increasing accumulation, while a steep decline, as observed previously day, may signal a shift toward caution. Due to this fact, the recent decrease in large transaction activity implies that investors are either taking profits or remaining cautious.
Remarkably, the variety of transactions plummeted from 353 to 136 throughout the past 24-hour timeframe. This translates to a 61% decline, suggesting that many major holders could also be stepping away from the market on account of an absence of bullish conviction.
Not only did the number of enormous transactions decrease, but the general transaction volume involving major trades also took a success. Data from IntoTheBlock reveals that the entire volume of SHIB transferred in these high-value transactions fell by roughly 55% from 6.81 trillion SHIB to three.05 trillion SHIB previously 24 hours. By way of US dollars, this translates to a 58% drop from $128.95 million to $54.74 million.
What Effect Does This Have For The SHIB Price?
The sharp decline in large transactions could have serious implications for Shiba Inu’s price, particularly within the short term if whale activity doesn’t get better soon. This decline in whale activity is already contributing to a price decline for the meme coin, which has witnessed 2.7% and 9.5% declines previously 24 hours and 7 days, respectively.
This decline has seen Shiba Inu losing support at $0.000020, even though it has managed to carry up above the subsequent support of $0.000018. Nonetheless, there stays the danger of further declines below $0.000018 if whale activity continues to say no. Without renewed whale interest, SHIB’s price may proceed to drift lower, because the absence of strong buy orders leaves it more vulnerable to volatility and bearish sentiment.
Featured image from Adobe Stock, chart from Tradingview.com