On-chain activity for Shiba Inu has gone into a tailspin with daily transactions down to 628billion Shiba Inu compared to previous trillion level numbers. This decreased volume also worries about SHIB market appeal and sustainability in the long term with the risk of a reduction in activity from large holders, or ‘whales.’
Whales may be taking a pause on SHIB transactions on the basis of the weak price movement and adverse market conditions, say analysts. A reduced whale activity could lead to a reduced amount of buying pressure, and slowdown a price rise. Since there are less whale transactions, there can be less trading interest and liquidity for SHIB to ride on.
Shiba Inu Volume Drops As Whale Retreat Threatens Stability
A whale could help stabilize Shiba Inu if it isn’t supported by other whales, which usually stabilizes volatile assets — the token could be more susceptible to price swings caused by small market orders.
Shiba Inu Technical analysis states that the coin is struggling to maintain an upward trend due to the different levels of resistance and support: the essential level of support at $0.000017 and resistance at $0.000018 and $0.00002. A break out would need significant volume.
The return of whales is crucial to determine the price once they return and whale activity is absent, any possible price rally will likely depend on retail investor interest, which perhaps may not be sufficient to cause vigorous price gains. On the other hand, analysts suggest that the on chain data generalized the present market condition but fundamentals will have a much bigger role in predicting the future course of the SHIB.
