As a seasoned crypto investor with years of experience under my belt, I’ve learned to pay close attention to on-chain data and market trends when it comes to investing in cryptocurrencies. And based on the recent data regarding Shiba Inu (SHIB), I’m growing increasingly concerned.
As an analyst, I’ve closely monitored the significant whale-sized transactions in Shiba Inu as a crucial sign of the asset’s vibrancy and market activity. However, recent developments have raised concerns. Specifically, the 24-hour trading volume of large transactions has dropped drastically below 1 trillion tokens – a stark contrast to the impressive 7.49 trillion tokens transacted earlier this week. This trend, if not addressed, could potentially indicate a dangerously decreasing market participation and liquidity.
Recent on-chain data from IntoTheBlock indicates a significant drop in the number of large Shiba Inu transactions. Specifically, there were only 45 such transactions within the past 24 hours, which is a stark contrast to the peak of 285 transactions that occurred on June 18.
There has been a significant reduction in both the number and value of Shibaswap (SHIB) transactions recently. Transactions peaked at a staggering 7.68 trillion SHIB on Monday, but have since dropped to only 747.97 billion SHIB within the last 24 hours. This substantial decrease in transaction volume represents the total amount of Shibaswap tokens transferred during these exchanges.
As an analyst, I find it noteworthy that the level of activity among whale investors in Shiba Inu has decreased significantly. This trend is concerning because these large investors are often the ones responsible for notable market movements. The cause of this decline could be attributed to several factors. For instance, there might be a decrease in overall market sentiment, leading big investors to lose interest in Shiba Inu.
Based on the Shiba Inu chart’s analysis, the asset price is taking a nosedive below significant moving averages, suggesting a potential downward trend for the token. The meager trading activity is evident in the falling Relative Strength Index (RSI) within the “oversold” zone and on low trading volume. Additionally, the rate’s descent beneath long-term average indicators like 200 and 100 indicates a strong bearish market sentiment.
The Shiba Inu market could experience various consequences due to the reduction in large-scale transactions. With fewer large trades, SHIB‘s liquidity might be affected, making its price more susceptible to market fluctuations. Additionally, whale investors, known for their significant buying power, may not show up as often to buy SHIB, leaving less support against selling pressure. This could potentially lead to a further decline in the coin’s price.
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2024-06-23 14:00