In recent developments, the meme cryptocurrency Shiba Inu has experienced a notable price increase, registering an 8% rise within the past day. Despite this upward trend, a contrasting pattern has emerged, characterized by a significant drop in whale activity, as reported by the on-chain analytics platform, IntoTheBlock.
Significant Drop in Shiba Inu Whale Transactions
Whale transactions, indicative of large-holder activity in the cryptocurrency sector, have shown a stark decrease. Data from IntoTheBlock, which monitors significant SHIB transactions valued at $100,000 or more, illustrates this trend vividly. Over the last 24 hours, approximately 5.72 trillion SHIB tokens were involved in substantial transactions, marking a dramatic 73% drop from the previous 21.23 trillion SHIB recorded on November 14.
From a financial perspective, the total value of these large transactions amounted to $145.37 million in the recent 24-hour period. This represents a 70% reduction from the $493.66 million documented on November 14, and an even more pronounced 81% decline when compared to the $784.79 million reported on November 12. This sharp decrease could have significant repercussions for SHIB’s market outlook.
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Potential Impact on Shiba Inu’s Market Performance
Despite the recent positive momentum in Shiba Inu’s price, the level of whale involvement has not mirrored its previous intensity. Insights from Santiment, another on-chain analytics platform, suggest that the recent upticks in meme coin prices, including SHIB, are primarily driven by retail investors rather than large-scale holders.
Currently, SHIB boasts a market capitalization of $15 billion, according to TradingView data. The decline in large transactions might indicate a waning confidence among whales or their withdrawal from the market, which could lead to reduced liquidity and potential volatility in price.
Adding to the intrigue, Whale Alerts, a crypto whale transaction monitoring service, highlighted a significant transfer involving 4 trillion SHIB, valued at $99 million, between anonymous wallets. The rationale behind this substantial movement remains unclear, but it suggests a possible redistribution by a major SHIB whale or a cryptocurrency exchange. As of now, the sender’s address, ‘0x4221,’ holds $185.9 million worth of SHIB, while the recipient’s address, ‘0x633b,’ possesses $101.88 million in SHIB.
Currently trading at $0.00002545, Shiba Inu’s price has appreciated by 7% over the last 24 hours. This renewed buying momentum has led to a significant rebound in the Relative Strength Indicator, rising from approximately 33 to 69 in recent hours. Nevertheless, the decline in whale transaction activity remains a crucial trend to monitor.
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