As a seasoned researcher with extensive experience in the crypto market, I’ve witnessed my fair share of volatility and market swings. The recent on-chain dynamics of Shiba Inu (SHIB) have left me intrigued and slightly concerned.
The transaction activity of Shiba Inu on the blockchain has been marked by significant fluctuations: A massive transfer of over 50 trillion SHIB tokens occurred just a few days ago, which was followed by a swift decrease, resulting in only around 1.4 trillion SHIB being transacted within the past 24 hours.
As a researcher examining the impact of the WazirX exchange hack, I cannot help but note that the significant transaction involving 50 trillion SHIB tokens was widely attributed to the fallout from this security breach. Consequently, a substantial portion of these tokens flooded the market, potentially contributing to a downturn in SHIB’s price.
Market makers such as Wintermute played a crucial role in mitigating market instability by buying SHIB tokens from decentralized platforms and transferring them to centralized exchanges for arbitrage opportunities. Consequently, the market’s volatility was somewhat restrained.
The drop in SHIB transaction volume to 1.4 trillion could indicate that the initial wave of selling and panic has subsided. It’s plausible that major SHIB holders, including whales, have finished their transactions or are currently holding back on making larger moves in the market.
Initially, there were worries about SHIB undergoing a considerable price decrease. However, it managed to maintain its ground and clung to its support levels at approximately $0.00001778. The price stability that ensued is an indicator of robust market backing for SHIB. This resilience suggests that the market has effectively absorbed any excessive liquidity without triggering a major correction.
Analyzing the data of recent transactions, we notice a significant decrease in the number of large transactions, aligning with the overall volume reduction. In the short term, this trend may persist as market stability sets in and investors regain confidence. To minimize further price fluctuations for SHIB, it’s crucial that it holds its current support levels.
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2024-07-21 13:30