As a seasoned analyst with years of experience in the volatile world of cryptocurrencies, I must admit that the current state of Shiba Inu leaves me a bit concerned. The decreased whale activity and transaction volumes are reminiscent of a once bustling market square now eerily quiet, save for the occasional passerby.
Due to a substantial drop in whale-sized trades, Shiba Inu (SHIB) is now excluded from the group of assets valued at one trillion dollars. This development raises concerns about the token’s price stability and potential future growth. Notably, large transactions have dropped to their lowest level in 24 hours with only 44 transactions, as per recent on-chain data. Moreover, the total volume has plummeted to approximately 895.12 billion SHIB.
Major investors often serve as the backbone of market momentum, but their reduced involvement is causing uncertainty about the near-term future of an asset. When big players like ‘whales’ actively invest, their substantial purchases tend to bolster and increase prices. However, Shiba Inu currently lacks the buying power necessary to sustain a significant surge due to the ongoing outflow.
Due to a decline in whale involvement, the market has shifted heavily towards independent traders. Although there remains a significant amount of retail enthusiasm for SHIB, it’s clear that smaller individual investors don’t possess the buying power equivalent to that of whale wallets. Consequently, SHIB may struggle to regain its previous highs without new activity from these large-scale investors.
To put it simply, the graph suggests that Shiba Inu‘s price is almost touching its safety net (support levels), and at the moment, there aren’t any clear, powerful signals pointing towards an immediate bullish trend. If major investors fail to intervene, the moving averages could signal a potential downward shift or further fall. Moreover, the RSI values are quite low, meaning there isn’t much energy driving the price up or down. However, the decrease in trading volume might be tilting the scales towards a bearish outlook.
For Shiba Inu (SHIB) to regain its momentum, it might require either a significant increase in high-volume transactions or a major event as a catalyst to attract large-scale investors again. If the low activity among whale investors persists, the asset could face additional risks and challenges in recovering, as this pattern may prolong any downward trends.
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2024-10-28 14:06