6 Trillion Shiba Inu (SHIB) in 24 Hours: October Record Broken

Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Almost six trillion Shiba Inu tokens were transferred between major wallets in the past day, according to on-chain data indicating a huge increase in large transactions. The SHIB ecosystem is experiencing increased activity, as evidenced by this impressive volume, which set a new October high and points to possible market volatility in the future. 

Nevertheless, it is unclear if this movement is the result of widespread selling or buying interest. If this spike in activity is a sign of accumulation by institutional investors or whales expecting a future rally, it may be bullish. There is a bearish interpretation to take into account, though, as these significant transfers could be a component of a larger sell-off strategy. 

SHIB/USDT Chart by TradingView

This would probably result in an increase in supply and possible downward pressure on the price of SHIB. Historically, increases in transfer volume without a corresponding rise in price frequently indicate selling as opposed to accumulation. When we look at SHIB's price chart, we can see that it has been trading in a fairly narrow range, with important resistance levels around $0.000020 and support levels around $0.000017. 

A significant influx of new buyers would be necessary for SHIB to break out favorably and maintain its upward momentum. However, if there is no buying interest, SHIB may revisit lower support levels, and if selling pressure persists, there may be declines. Additionally, the on-chain data indicates that there were 224 significant transactions over the past 24 hours, which is quite near the weekly peak of 269 transactions on Oct. 29. Although this high number of transactions supports the idea of increased activity, it is still unclear how it will affect the price, until it is further determined whether these movements are buys or sells.