Decline in Large Shiba Inu Transactions: A Concerning Indicator for Market Health
The activity level of whale investors is a crucial indicator of asset health and market activity. However, recent data indicates a significant drop in large transactions involving Shiba Inu (SHIB). According to on-chain data from IntoTheBlock, the 24-hour volume of large transactions has plummeted to below 1 trillion tokens, a stark contrast to the 7.49 trillion recorded earlier this week. Over the past 24 hours, only 45 large transactions were executed, a sharp decrease from the seven-day high of 285 transactions on June 18.
This drop translates to a total of just 747.97 billion SHIB moved in large transactions over the past 24 hours, down from the peak volumes observed earlier in the week. Large transaction volume indicates the total amount of SHIB transferred in these transactions.
The decline in large transaction volume coincides with a decrease in the overall number of transactions, from a peak of 7.68 trillion SHIB earlier this week. This trend is alarming as it suggests a significant reduction in whale investor activity, who are often key drivers of notable market movements. This decline could be attributed to several factors, including a general downturn in market sentiment, leading major investors to show less interest in SHIB.
The Shiba Inu price chart reflects this reduced activity, with the asset’s price falling below key moving averages, indicating a bearish trend. The weakening trading activity is evident from the declining Relative Strength Index (RSI), which is now in the “oversold” territory with relatively low volume. Furthermore, the price is moving below long-term moving averages like the 200-day and 100-day averages, signaling strong bearish sentiment.
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Several implications for the Shiba Inu market may arise from the decline in large transaction volumes. SHIB’s liquidity could suffer from fewer large transactions, increasing its sensitivity to price fluctuations. Additionally, the lack of substantial buying activity from whale investors could lead to further declines in SHIB’s price, as there will be less support to withstand selling pressures.
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