Meme coin Shiba Inu is facing renewed downward pressure, with its price reflecting a decline in both the 24-hour and seven-day timeframes. Furthermore, on-chain data reveals a similar trend of a significant drop in large transactions, raising concerns about waning whale activity. The latest figures from IntoTheBlock show a sharp decline in both the number and volume of large transactions within the Shiba Inu ecosystem, which signals reduced investor confidence or temporary market stagnation in the coming days.
Shiba Inu Large Transactions Suffer 61% Crash
Recent data sourced from on-chain analytics platform IntoTheBlock opens up interesting dynamics among large addresses holding Shiba Inu. These interesting dynamics are none other than whale activity, which has taken a major hit in the past 24 hours.
The trend among large Shiba Inu addresses is revealed through IntoTheBlock’s Large Transactions metric, which tracks data surrounding transactions with a value of $100,000 or greater. This metric serves as a valuable tool for assessing market sentiment, as it captures the movements of high-value investors, whose actions often influence the behavior of retail traders.
A rise in large transactions is generally associated with growing confidence and increasing accumulation, while a steep decline, as observed in the past day, may signal a shift toward caution. Therefore, the recent decrease in large transaction activity implies that investors are either taking profits or remaining cautious.
Remarkably, the number of transactions plummeted from 353 to 136 within the past 24-hour timeframe. This translates to a 61% decline, suggesting that many major holders may be stepping away from the market due to a lack of bullish conviction.
Not only did the number of large transactions decrease, but the overall transaction volume involving major trades also took a hit. Data from IntoTheBlock reveals that the total volume of SHIB transferred in these high-value transactions fell by roughly 55% from 6.81 trillion SHIB to 3.05 trillion SHIB in the past 24 hours. In terms 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 in the short term if whale activity does not recover 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 in the past 24 hours and seven days, respectively.
This decline has seen Shiba Inu losing support at $0.000020, although it has managed to hold up above the next support of $0.000018. However, there remains the risk of further declines below $0.000018 if whale activity continues to decline. Without renewed whale interest, SHIB’s price may continue to drift lower, as the absence of strong buy orders leaves it more vulnerable to volatility and bearish sentiment.
Featured image from Adobe Stock, chart from Tradingview.com
