Shiba Inu witnesses staggering 49% drop in transaction volumes within a day, sparking speculation about whales departing.
Cryptocurrency Chronicle
It's no secret that Shiba Inu's whales have been orchestrating market moves left and right, and the recent price surge was no exception. Bigwigs in the crypto world have been jumping back into the game as the Shiba Inu price surpassed $0.000017. However, things took a turn for the worse when these colossal transaction volumes plummeted by an astounding 49% in a single day.
Shiba Inu's Giant Volumes Plummet
According to data from IntoTheBlock, the steady rise in Shiba Inu whale volumes started in early May. On May 12, the SHIB price hit a monthly high of $0.000017, leading to a whopping 6.35 trillion SHIB being moved in transactions with over $100,000. That's a mind-blowing $100 million in large transactions for a single day. But it was all too short-lived.
By May 13, the large transaction volumes took a nosedive, dropping to just 3.25 trillion SHIB. That's a 49% decrease from the previous day's colossal numbers. This Last call brought the dollar figure down to a measly $53.05 million.
This drastic decline in large transaction volumes came at a time when the overall crypto market rally started to lose steam. The SHIB price also saw a slight pullback from $0.000017 to a humbler $0.000015 in just a day.
This dramatic decrease in large whale transactions suggests that these big-time investors might've been dumping their SHIB stock, creating sell pressure that pushed the price down. It also explains the decline in large transaction volumes, as these whales switched from buying to selling.
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Shiba Inu's Profitability Remains Low
The dip in the Shiba Inu price has had a significant impact on its holders, with less than half enjoying a profit at the current price levels. Only 45% of all holders are in the green right now, with an astounding 50% still in the red, according to data from IntoTheBlock.
Despite being the second-largest meme coin in the game, Shiba Inu ($9.5 billion market cap) remains behind Dogecoin, sitting comfortably on the throne. Peak TO THE RIGHT, it outshines other meme coins like PEPE at $5.9 billion and TRUMP with a $2.7 billion market cap.
Editorial Process
The sharp decline in Shiba Inu's large transaction volumes indicates profit-taking or selling by whales, as they capitalized on the recent price rise. This shift in market sentiment could lead to a short-term bearish or sideways market trend for SHIB, possibly causing a price retracement or consolidation.
The reduction in large whale participation may signal waning investor confidence or hesitation in the market, impacting SHIB’s price momentum negatively in the short term despite previous gains. This trend could indicate a shift from bullish momentum to caution or profit-taking among key holders.
This decline in whale activity also coincides with a broader slowdown in the crypto market rally and increasing volatility. The general reduction in large transaction volume and whale participation could indicate ongoing market uncertainty.
- Investors, who previously moved a staggering $100 million in SHIB transactions in one day, have now reduced their large transaction volumes by 49%, moving only $53.05 million the next day, potentially signaling a shift from buying to selling.
- The drop in large whale transactions, coupled with a broader crypto market slowdown and increasing volatility, may hint at ongoing market uncertainty and caution among key holders, potentially leading to a short-term bearish or sideways market trend for Shiba Inu.
