Emily Walker
The meme-based cryptocurrency Shiba Inu is experiencing a resurgence with an 8% price increase over the last 24 hours. However, this growth is juxtaposed with a notable drop in whale trading activity, as per insights from the on-chain analytics tool IntoTheBlock.
Specifically, there has been a dramatic 70% drop in sizable Shiba Inu transactions within this timeframe. This significant reduction might greatly affect SHIB’s future market performance.
Whale Trading Activity Drops 70% in Just One Day
Transactions made by whales are often seen as a barometer of interest from large holders in a cryptocurrency. This activity is monitored through the ‘Large Transactions Volume’ indicator on IntoTheBlock, which tracks SHIB transactions valued at $100,000 or more.
Over the past day, 5.72 trillion SHIB tokens have been transferred in significant transactions. This represents a striking 73% decrease from the 21.23 trillion tokens recorded on November 14.
In dollar terms, the total value of these high-value transactions reached $145.37 million in the last 24 hours, marking a 70% drop from the $493.66 million noted on November 14. The decline is even steeper compared to the $784.79 million reported on November 12, signifying an 81% decrease in transaction value over four days.
Impact of Whale Activity on SHIB’s Pricing Trends
Despite the recent positive movements in Shiba Inu’s price, whale trading has seen a downturn. Santiment, another analytics platform, has indicated that the current price surge for meme coins like SHIB has primarily been driven by retail investors.
The reduction in major transactions may indicate a loss of confidence among whale investors. This shift could result in lower liquidity and affect price stability moving forward.
According to whale transaction monitoring service Whale Alerts, a significant transfer involving 4 trillion SHIB, valued at $99 million, took place between unidentified wallets. The reason behind this extensive movement remains unclear, but it may relate to a reassignment of assets by a sizable holder or an exchange. Presently, the sending address ‘0x4221’ maintains a SHIB holding worth $185.9 million, while the receiving address ‘0x633b’ holds $101.88 million in SHIB.
Currently, Shiba Inu trades at $0.00002545, reflecting a 7% increase in the last 24 hours. Buying momentum has returned, shown by the Relative Strength Index bouncing from approximately 33 to 69 within a few hours. Nevertheless, the ongoing decline in whale transactions is a significant trend to monitor closely.
Featured image from Pixabay, chart from TradingView