Emily Walker
The meme coin Shiba Inu is currently experiencing renewed downward movement, indicated by its price drop over the last 24 hours and week. Additionally, on-chain analysis suggests a notable decline in large transactions, which raises alarms about reduced whale engagement. Recent statistics from IntoTheBlock point to a significant downturn in both the count and volume of substantial transactions within the Shiba Inu network, hinting at diminished investor confidence or a period of market inactivity in the near future.
Large Transactions of Shiba Inu Plummet by 61%
Insights from the on-chain analytics platform IntoTheBlock reveal significant changes among the large addresses holding Shiba Inu. Whale participation has notably decreased in the last 24 hours.
IntoTheBlock’s Large Transactions metric tracks transactions valued at $100,000 or more, providing a useful gauge of market sentiment by monitoring high-value investors whose trading patterns often influence retail trading behavior.
Typically, an increase in large transactions suggests growing confidence among investors, while a dramatic decrease, like the one seen recently, may indicate a more cautious approach. The latest data suggests that investors might be securing profits or opting to stay cautious amidst current market conditions.
Specifically, the number of large transactions fell from 353 to 136 over the past day, representing a staggering 61% drop, signaling that several major holders may be withdrawing from the market due to diminished bullish sentiment.
Moreover, the overall transaction volume in significant trades also experienced a downturn. IntoTheBlock’s data shows that the total amount of SHIB involved in these large trades decreased by approximately 55%, from 6.81 trillion SHIB to 3.05 trillion SHIB in just 24 hours. This also equates to a 58% decline in USD terms, down from $128.95 million to $54.74 million.
Implications for Shiba Inu’s Price
The considerable drop in large transactions could lead to severe repercussions for Shiba Inu’s price, especially in the short term if whale activity does not rebound quickly. This diminishing whale participation has already contributed to a price decrease for the meme coin, with losses of 2.7% and 9.5% over the past day and week, respectively.
As a result, Shiba Inu has lost support at the $0.000020 level, but it is still holding above the next support level of $0.000018. However, if whale activity does not improve, there is a risk of further declines below $0.000018. Without increased interest from whales, SHIB’s price may continue to drop, as the lack of strong buy orders renders it more susceptible to market fluctuations and bearish sentiment.