The popular doggy-themed meme coin, Shiba Inu, has recently witnessed a significant downturn in whale net flows. This shift indicates a change in sentiment among large-scale investors and could have far-reaching effects on the meme coin’s price trajectory, especially since Shiba Inu has been facing intense downward pressure over the past few months.
Shiba Inu Whale Net Flows Take A Nosedive
Recent data from IntoTheBlock highlight a substantial decline in whale net flows involving Shiba Inu. Earlier this month, reports surfaced indicating that SHIB had achieved a 7-day record high in its large transaction volume, with over 3.5 trillion SHIB tokens being transferred across various wallets.
However, new revelations from IntoTheBlock show that Shiba Inu whale net flows have plummeted by more than 30,000%. Whale net flows are a crucial metric used to track the movements of large amounts of cryptocurrencies between wallets. A significant decline in this metric for Shiba Inu suggests that these so-called “whales” or large-scale investors are either selling off or reducing their holdings, which can signal a possible decrease in confidence in the meme coin.
Advertisement Banner
Additionally, the unexpected decrease in whale net flows may indicate that investors are swiftly taking profits from Shiba Inu’s recent price surge. At the start of the year, SHIB was among the top-performing meme coins, registering massive price gains that propelled it to new highs.
However, following this short-lived rally, the cryptocurrency quickly turned bearish, experiencing significant price declines and increased market volatility. This substantial price correction may be why large-scale investors are now exiting the Shiba Inu market, leading to a decrease in whale net flows.
As a meme coin, Shiba Inu is highly speculative and very sensitive to changes in market sentiment. This is why monitoring whale movements is essential, as these large-scale transactions often influence retail investor sentiment. Therefore, the recent drop in whale net flows could undermine confidence in SHIB, potentially triggering a broader sell-off among investors.
Despite this bearish trend, Shiba Inu continues to see a notable rise in large transaction volumes. Over the past 24 hours, the meme-based cryptocurrency recorded a total volume of 1.78 trillion SHIB tokens.
Is A Price Decline On The Horizon?
The unexpected decrease in whale net flows could drastically affect Shiba Inu’s price dynamics, especially given the current fragility of the cryptocurrency market. According to CoinMarketCap, SHIB is currently trading at $0.000013, which is more than 84% below its all-time high in 2021.
While the shift in Shiba Inu’s whale net flows could be seen as a bearish signal, the cryptocurrency’s future performance will also depend on various other factors. Positive developments in the market could lead to a more favorable outlook for SHIB’s price.
However, at present, Shiba Inu is exhibiting signs of extreme bearish activity, with its large transactions and net network growth both in the red.
In conclusion, the significant decline in Shiba Inu whale net flows is a critical development that investors should closely monitor. This downturn could signal a decrease in confidence among large-scale investors, potentially leading to further price declines. Nonetheless, the future of SHIB remains uncertain and will depend on broader market trends and investor sentiment.
