Shiba Inu Faces Volatility as Whale Transactions Hit Record Low

• Shiba Inu’s declining large transaction volume may signal trouble ahead for the cryptocurrency.
• On-chain data indicates that whale transaction volume in SHIB has dropped below 500 billion SHIB within the last 24 hours, now standing at 365.69 billion SHIB.
• Significant liquidity issues and a potential price reversal could stem from this recent decline.

Shiba Inu’s large transaction volume has plummeted, raising concerns over potential liquidity problems. Read on for detailed analysis and future outlook.

Decoding Shiba Inu’s Decline in Large Transactions

In the past day, Shiba Inu has seen a sharp decline in large transaction volumes, dropping below the 500 billion SHIB mark to 365.69 billion SHIB, according to recent on-chain data. This trend suggests dwindling whale activity, which could foreshadow significant liquidity problems and a potential price reversal in the near future.

The Current State of Whale Activity

Analyses of on-chain metrics reveal that the number of large transactions has dropped to a seven-day low, with only 15 recorded transactions. This is a stark contrast to the seven-day high of 75 transactions recorded on July 22, 2024. The decrease in whale activity can significantly impact both the price and liquidity support of SHIB, corroborated by the sharp drop in transaction volume and the number of sizable transactions.

Technical Indicators Highlight SHIB’s Risky Position

Turning to technical charts, SHIB’s price action has formed a descending wedge pattern. This pattern is typically a precursor to volatility and often hints at a bullish breakout if prices manage to break above the upper trendline. However, SHIB appears to be grappling with maintaining momentum, failing to break through critical moving averages that act as resistance points.

Key Moving Averages Acting as Barriers

For Shiba Inu to signal a bullish reversal, it must break above both the 50-day and 100-day Exponential Moving Averages (EMA). Currently, the SHIB price is hovering close to the lower boundary of the falling wedge, suggesting that if bearish sentiments persist, the downtrend may continue. These technical indicators emphasize the precarious position SHIB finds itself in.

Conclusion

In summary, the plummeting large transaction volume and reduction in whale activity raise red flags about Shiba Inu’s immediate future regarding liquidity and price stability. With SHIB struggling to surpass critical moving averages and sitting near the lower bound of a descending wedge, market participants should prepare for potential continued bearish trends unless a bullish breakout materializes. Investors ought to stay informed and vigilant in this evolving landscape.