Popular doggy-themed meme coin, Shiba Inu, has experienced a major crash in whale net flows, signaling a shift in sentiment among large-scale investors. This sharp decline could have significant repercussions for the meme coin’s price, especially as Shiba Inu has been under severe downward pressure in the last few months.
Shiba Inu Whale Net Flows Take A Nosedive
New data from IntoTheBlock show a major decline in the whale net flows involving Shiba Inu. Earlier this month, reports revealed that SHIB had achieved a 7-day record high in its large transaction volume, seeing over 3.5 trillion SHIB tokens transferred across different wallets.
However, IntoTheBlock has now revealed that Shiba Inu whale net flows have crashed by more than 30,000%. Whale net flows is a metric typically used to track the movements of large amounts of cryptocurrencies between wallets. In the case of Shiba Inu, a significant decline in this metric suggests that these so-called “whales” or large-scale investors are either selling or reducing their holdings, signaling a possible decrease in confidence.
Moreover, the unexpected decrease in whale net flows may be an indication that investors are quickly taking profits from Shiba Inu’s recent price increase. At the beginning of the year, SHIB was one of the top-performing meme coins, recording massive price gains that pushed it to new highs.
Following the short-lived rally, the cryptocurrency swiftly turned bearish, experiencing substantial price declines and heightened market volatility. This massive price correction may be the reason why large-scale investors are now exiting the Shiba Inu market, leading to a decrease in whale net flows.
As a meme coin, Shiba Inu is highly speculative and sensitive to changes in market sentiment. This is why tracking whale movements is important, as these large-scale transactions often influence retail investor sentiment. As a result, the recent drop in whale net flows could erode confidence in SHIB, potentially leading to a broader sell-off amongst investors.
Despite this bearish trend, Shiba Inu continues to experience a significant rise in large transaction volume. Over the past 24 hours, the meme-based cryptocurrency has recorded a total volume of 1.78 trillion SHIB tokens.
Is A Price Decline On The Horizon?
The unexpected decrease in whale net flows could have a drastic effect on Shiba Inu’s price dynamics, considering how fragile the cryptocurrency market currently is. CoinMarketCap reports that SHIB is presently trading at $0.000013, down by more than 84% since its all-time high in 2021.
While the shift in Shiba Inu’s whale net flows could be interpreted as a bearish signal, the future performance of the cryptocurrency is also contingent on various other factors. Positive changes in the market could lead to a more favorable outlook on the cryptocurrency’s price.
However, presently, Shiba Inu is showing signs of extreme bearish activity, with its large transactions and net network growth in the red.
Featured image created with Dall.E, chart from Tradingview.com
Be the first to comment