From 6.3 Trillion to 2.5 Trillion Shiba Inu (SHIB) in 24 Hours: What's Up?

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.

Shiba Inu has experienced a dramatic drop in the volume of on-chain transactions in a single day; the total volume of large transactions fell from 6.3 trillion to 2.5 trillion SHIB. Whale activity has significantly decreased, which could be a sign of diminished support or interest from major investors, who had been fueling SHIB's recent price increase.

Large transaction volumes declining is frequently linked to a change in major holders' sentiment. Whales may be relocating their money to another location or delaying future investments when they withdraw from ongoing transactions. Given that these major investors frequently give the market significant support and liquidity, decreased whale participation could be a problem for SHIB's current upward trajectory.

SHIB/USDT Chart by TradingView

SHIB has recently run into significant resistance around the $0.000019 level, according to the price chart. A crucial barrier in the ascending triangle pattern that SHIB has been forming at this price point has proven challenging to break. Ascending triangles are typically bullish patterns that suggest prices may eventually rise, but only if there is strong enough buying pressure, which the recent drop in whale transactions may threaten. 

Technically, SHIB's moving averages indicate some possible support, with shorter-term moving averages (like the 50 EMA) positioned above longer-term ones, forming a strong configuration. But given the drop in whale support, SHIB might find it difficult to keep up this momentum. Although not particularly strong, the RSI's current hovering around 59 indicates that buying interest is still present. For the time being, SHIB investors should keep a close eye on whether major holders will start to participate again.

Should whale participation fail to rebound, SHIB may experience heightened selling pressure, which would make breaking through the $0.000019 resistance more difficult. In contrast, SHIB may indicate resilience among smaller investors and lead to a steady, albeit slower, upward move if it can sustain support around the $0.00017 level without whale backing.