SHIB Declines 84% In Key Metric As Whales Disappear
According to data from IntoTheBlock, a significant decline has been recorded in large transaction volumes associated with the Shiba Inu token.
In the last 48 hours, there has been an 83.77% decline in the volume of large transactions involving the meme-inspired crypto token.
The data
Large transactions refer to those that are valued at $100,000, or higher. The decline translates from 11.65 trillion Shiba Inu tokens to only 1.89 trillion tokens.
As a matter of fact, this decline is even more pronounced in monetary terms. They have gone from $321.63 million to $47.69 million, which is a fall of 85.2%.
During this period, the price of the Shiba Inu token also suffered losses of 2.4%. There has also been a dramatic decline in the number of large transactions.
In the two day period, the large transactions dropped from 584 to 99. Large transactions are usually used to assess the actions of institutional investors and whales in the market.
A decline in these transactions points towards a significant fall in the activity of these major players in the SHIB ecosystem.
The impact
A decline in whale activity is considered negative for the Shiba Inu token, but the causes remain unknown.
For the most part, big players tend to take positions in the market when there is calm and when there is a lack of action on price charts.
In the last month and a half, there has been a significant decrease in volatility in the price of the Shiba Inu token.
It has been trading sideways for the most part. Despite this, the price has demonstrated an uptrend. This is evident from the fact that it recorded higher lows and higher highs.
It can be considered a positive sign. Moreover, it appears that whales have now stopped accumulating the token.
Therefore, there might be a big movement on the horizon for SHIB. But, it remains to be seen whether the movement will be upward or downward.
SHIB price
Meanwhile, the price of the second-largest meme token in the market bounced off the 50-day EMA. This level has been considered a strong support level for the meme token.
Fortunately, SHIB was able to record a breakthrough, but there are a number of resistance levels standing in its way.
The 50-day Exponential Moving Average (EMA) has proven to be a dependable support level and gave SHIB the boost it needed for recording a comeback.
Thanks to this rebound, there is a chance that the Dogecoin rival will be able to record a reversal. This would put a stop to the decline that started a week earlier.
Another important thing to note is that the SHIB token is currently trading above the 100-day EMA. This is considered a mid-term trend indicator.
It indicates that the overall trend for the SHIB token is mostly bullish. Nonetheless, the 50-day EMA could turn into a resistance level in the future.
However, there is a rise in trading volume, which points towards intense market interest. This usually results in prominent price changes.
