As a seasoned financial analyst with over a decade of experience in analyzing digital assets, I have seen my fair share of market trends and patterns. The current state of Shiba Inu (SHIB) is causing me some concern based on recent on-chain data.
Shiba Inu could encounter issues based on the significant drop in its large-scale transactions. According to recent on-chain analysis, whale transactions for SHIB have decreased dramatically, from over 500 billion SHIB the previous day to currently standing at approximately 365.69 billion SHIB.
As a researcher studying cryptocurrency markets, I’ve noticed a concerning trend: the number of large transactions has dropped to its seven-day minimum, with only 15 such transactions recorded. This decline represents a substantial decrease compared to the 75 large transactions that were transacted on July 22, 2024 – a disparity that could potentially lead to significant liquidity issues and even a price reversal in the near future.
The decrease in whale activity is troubling news as it contributes to a drop in price and market liquidity. This is evident in both reduced transaction volume and fewer large transactions. Based on the provided price charts, SHIB‘s price movement has formed a descending wedge pattern.
If the Shib token price surpasses its upper trendline, this often signals increased market volatility and potentially a bullish market reversal. However, the current situation with Shib presents a confusing image. The price has been hovering around key moving averages, which act as resistance levels.
The precarious stance of SHIB is underscored by its technical indicators. For a potential bullish turnaround, SHIB needs to surpass both its 50-day moving average and its 100-day moving average. Currently, the price hovers near the lower limit of the descending triangle, implying that if the bearish sentiment persists, the downtrend could prolong.
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2024-07-29 14:10