The cryptocurrency landscape is ever-evolving, and Shiba Inu (SHIB), a popular doggy-themed meme coin, is no exception. Recently, it has been observed that SHIB may be on the brink of a significant market downturn. This potential shift is primarily attributed to a drastic reduction in whale transaction volume, which could significantly impact its market valuation.
Plummeting Whale Transactions: A Cause for Concern
Recent data from IntoTheBlock highlights a stark decrease in substantial Shiba Inu transactions, typically orchestrated by individuals known as “Whales.” These players are renowned for their large-scale crypto dealings. On October 1, Shiba Inu witnessed a spike in large transaction volumes, soaring to 8.27 trillion. This surge indicated a renewed positive sentiment among investors regarding the meme coin.
However, this enthusiasm was short-lived as transaction volumes have plunged to an alarming 1.39 trillion, marking a dramatic 83.2% decline. In monetary terms, the transaction value dropped from $135.84 million to a mere $25.2 million. This sharp decline reflects a waning investor confidence, contrasting sharply with the previous month’s optimism when Shiba Inu’s price reached approximately $0.00002.
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In comparison to its counterpart, Dogecoin, SHIB is currently losing traction as whale interest diminishes. According to IntoTheBlock’s insights, whale activity has consistently declined. Large transaction volumes fell from 5.55 trillion on October 2 to 2.62 trillion by October 3, and further down to 1.6 trillion on October 6. This staggering reduction of 6.88 trillion in just a week underscores a significant shift in market dynamics.
Given the substantial influence whales exert on cryptocurrency prices, this unprecedented drop in large transaction volumes could negatively impact Shiba Inu’s market price. Despite a recent 6.94% price increase in the past 24 hours, Shiba Inu has also experienced a 1.43% decline over the last week. As per CoinMarketCap, it is currently trading at $0.000018.
Potential Buying Opportunity Amidst Price Decline
In the face of these market fluctuations, an avid Shiba Inu advocate known as ‘SHIB Bezos’ on X (formerly Twitter) remains optimistic about the meme coin’s future prospects. This supporter believes that Shiba Inu may soon enter an oversold phase, where its price could dip below its intrinsic value.
Following this potential undervaluation, ‘SHIB Bezos’ foresees a robust recovery for Shiba Inu as selling pressures subside. This scenario presents a strategic buying opportunity, allowing investors to acquire the meme coin at a discounted rate. He further advises investors to retain their SHIB tokens for a prolonged period, ideally 5 to 10 years, predicting substantial growth over time.
As market dynamics continue to evolve, potential investors are encouraged to stay informed and consider the broader market trends when making investment decisions.
