Shiba Inu’s large transaction volume currently paints a bearish picture for the second-largest meme coin by market cap, have recorded a significant crash. This has raised concerns that the whales may be losing confidence in the meme coin’s potential, a development that could impact SHIB’s future trajectory significantly.
Shiba Inu’s Large Transaction Volume Crashes 35%
IntoTheBlock data shows that Shiba Inu’s large transaction volume has crashed by 35%, with 1.41 trillion SHIB traded in the last 24 hours as against the 2.19 trillion SHIB traded the previous day. This also represents a significant drop from the 7-day high of 4.35 trillion SHIB, which was traded on February 7.
This development is significant as it suggests that fatigue may be setting in for SHIB whales, who are reducing the rate at which they accumulate Shiba Inu. This paints a bearish picture for the meme coin, considering how these whales impact the price action. Moreover, buyer fatigue could cause SHIB to lose crucial support levels as sell pressure overwhelms the meme coin.
Besides the drop in large transaction volumes, ‘Net Network Growth’ is another on-chain metric that paints a bearish picture for Shiba Inu. There has been a drop in the rate at which new users adopt the meme coin, which is bearish for SHIB’s price. A lack of new investors means there is less room for the meme coin to grow.
It is also worth mentioning that 52% of Shiba Inu holders are currently out of the money, which is also bearish for the meme coin. SHIB could face a wave of sell-offs from these holders as they look to cut their losses.
Shiba Inu has underperformed since the start of the year, which is undoubtedly a cause for concern for these holders. The meme coin currently boasts a year-to-date (YTD) loss of over 22% and has been one of the coins greatly impacted by this market downtrend.
SHIB’s Big Move Still In Play
Crypto analyst Javon Marks confirmed that a big move is still in play for Shiba Inu. In an X post, he stated that SHIB looks to be setting up in a large inverse Head and Shoulders pattern and can be finishing up its final shoulder now before putting on a notable performance. The analyst predicted that SHIB could enjoy a rally of over 399% and run to the $0.000081 target.
Meanwhile, crypto analyst Shib Spain remarked that Shiba Inu is about to bounce hard, indicating that a bullish reversal was on the horizon. His accompanying chart showed that SHIB could rally to $0.000036 as it makes this recovery.
At the time of writing, the Shiba Inu price is trading at around $0.00001656, up over 6% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com
