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Shiba Inu (SHIB) has experienced a significant 50% decline in large transaction volume, signaling potential bearish trends in the market.
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This sharp decrease from six trillion to 3.65 trillion tokens transacted in a day reflects waning whale activity, often a precursor to price instability.
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According to COINOTAG, “The rapid evaporation of large transaction volume suggests major holders may be offloading or reducing exposure, increasing downside risks.”
Shiba Inu’s sharp drop in whale transaction volume signals potential price declines, with resistance at the 200-day EMA challenging recovery efforts.
Shiba Inu’s Transaction Volume Plunge and Its Impact on Price Stability
Shiba Inu’s recent 50% drop in large transaction volume is a critical indicator of shifting market dynamics. The volume decline from six trillion to 3.65 trillion tokens transacted in a single day is an unusual event, especially for a token known for its volatility. Large transactions typically represent institutional or whale activity, which often correlates with market confidence and accumulation phases. The sudden reduction in these transactions suggests a withdrawal of support from key market players, potentially foreshadowing increased price volatility and downward pressure.
Resistance at the 200-day EMA and Failed Recovery Attempts
Despite a brief rally that pushed SHIB above the 50-day and 100-day exponential moving averages (EMAs), the 200-day EMA has acted as a formidable resistance level. The price’s rejection at this critical technical barrier resulted in a nearly 2% drop within a single trading session. This pattern aligns with a classic distribution phase, where larger holders capitalize on short-term spikes to offload tokens into weaker retail liquidity. Such behavior often precedes sustained price corrections, underscoring the challenges SHIB faces in maintaining upward momentum.
Correlation Between Whale Activity and Market Capitalization Trends
Historical data reveals a strong correlation between whale transaction volume and Shiba Inu’s market capitalization. The last significant drop in whale activity preceded a multi-week decline exceeding 30% in market value. Currently, SHIB is clinging to the $0.000013 support level, which aligns with a short-term support confluence. However, without a resurgence in large transaction volume, this support is vulnerable. A continued decline could push prices toward $0.000012 or even $0.000011, eroding gains made during the recent July rally.
Market Outlook and Key Indicators to Watch
For SHIB to stabilize and potentially reverse its downward trajectory, a notable increase in whale activity is essential. Reclaiming and sustaining levels above the 200-day EMA would signal renewed institutional interest and could attract retail investors. Traders and analysts should monitor large transaction volumes closely, as these serve as a barometer for market sentiment among influential holders. Until such signs emerge, the probability of further downside remains elevated.
Conclusion
Shiba Inu’s steep decline in large transaction volume coupled with persistent resistance at the 200-day EMA highlights a precarious phase for the token. The withdrawal of whale support often precedes significant price corrections, and current technical indicators suggest limited upside in the near term. Investors should exercise caution and watch for increased transaction flow and a successful breach of key moving averages before considering bullish positions. Maintaining awareness of these critical metrics will be vital for navigating SHIB’s evolving market landscape.
