Doggy-themed meme coin, Shiba Inu (SHIB) could be on the verge of a major market downturn as recent data reveals a major crash in the cryptocurrency’s whale transaction volume. This sharp decline in whale activity could have far-reaching implications for its price outlook, hinting at a possible decline.
Shiba Inu Whale Transaction Plunge To Shocking Lows
New data from IntoTheBlock has disclosed a significant drop in large volume Shiba Inu transfers, typically made by “Whales,” individuals known for executing large-scale crypto transactions. On October 1, Shiba Inu’s large transaction volume surged to 8.27 trillion, reflecting a positive increase in investors’ sentiment towards the meme coin.
Currently, these transactions have crashed to shocking lows of around 1.39 trillion, marking a massive 83.2% decline. In USD terms, IntoTheBlock shows that large transaction volumes increased to $135.84 million but have declined to $25.2 million. The decrease in this Shiba Inu metric suggests a possible shift in investors’ confidence from earlier last month, when the price of Shiba Inu had increased to about $0.00002.
SHIB is currently losing momentum compared to other meme coins like Dogecoin, as whales are showing less interest in engaging in trading and transactions. According to IntoTheBlock’s data, whale activity has seen a steady decline, with large transaction volumes dropping from 5.55 trillion on October 2, to 2.62 trillion on October 3, and then 1.6 trillion on October 6. This means that in just a week, transactions have fallen by an astonishing 6.88 trillion.
Considering the influence whales have on the price of a cryptocurrency, this unprecedented decrease in large transaction volume could have adverse effects on the price of Shiba Inu. While the meme-based cryptocurrency has witnessed a recent price increase of about 6.94% in the last 24 hours, Shiba Inu has also fallen by 1.43% over the past week. As of writing, the cryptocurrency is also trading at $0.000018, according to CoinMarketCap.
SHIB Price Decline Signals Potential Buying Opportunity
As Shiba Inu faces market volatility and experiences a decline in whale transactions, an outspoken Shiba Inu supporter identified as ‘SHIB Bezos’ on X (formerly Twitter) continues to express confidence in the meme coin’s future outlook.
The SHIB supporter has stated that SHIB could eventually enter an oversold territory, where its price would decline lower than its actual value. Following this, he predicts that Shiba Inu may make a strong comeback, rebounding strongly after the selling pressures desist.
Considering the meme coin’s potential for a rebound, SHIB Bezos has stated that any pullback in Shiba Inu’s price presents an opportunity to buy the meme coin at a discount. He has also recommended investors hold onto their SHIB tokens for at least 5 to 10 years, anticipating potential growth over time.
Featured image created with Dall.E, chart from Tradingview.com