KeyTakeaways:
- Surge in SHIB whale activity, with a 258% increase in large transactions.
- SHIB price declines 4.32% despite increased trading volume.
- Negative net inflows and bearish indicators signal potential price decline.
Shiba Inu (SHIB), the dog-themed token, has recorded a surge in whale activity, with large transactions increasing by 258% over the past 24 hours.
Data from IntoTheBlock shows that 6.42 trillion SHIB have been moved in large transactions worth approximately $175 million.
While this surge in transaction volume captures attention, Shiba Inu’s price has declined by 4.32% in the same period, raising questions about the factors driving this increased whale activity.
Surge in Large Transactions Raises Speculation
Large transactions, typically those exceeding $100,000, often indicate market interest, usually from whales or institutional investors.
Source: IntoTheBlock
Despite the increase in transaction volume, Shiba Inu’s price remains under pressure at $0.0000256.
The surge in trading volume, which has increased by 4.92% to $784.6 million in the last 24 hours, suggests that while the market is active, market sentiment may negatively impact the token’s value.
Shiba Inu Inflows and Outflows Show Clear Market Trends
Shiba Inu’s price movements have shown a strong correlation with net inflows and outflows of funds. Periods of large inflows have led to price increases, while negative inflows have coincided with price declines.
Notably, in late February and early March, inflows were followed by sharp price rallies, but these gains were often followed by declines once outflows dominated the market.
Source: Coinglass
Massive negative flows of SHIB were noted in mid-November and at the beginning of December, and these inflows triggered a decline in the price of SHIB.
Such periods of negative net inflow are coupled with massive selling by large investors or whales, hence the added pressure towards a downward price for the tokens.
Bearish Indicators on the Horizon
Looking at Shiba Inu’s technical indicators, the MACD is below the signal line, indicating bearish sentiment. The MACD histogram is negative, confirming the downward pressure on the price.
Source: TradingView
Moreover, the RSI has been at the 33.24 level, meaning the token is oversold. This could be evidence of a reversal, though the absence of purchasing pressure suggests that downward movements will persist in the shorter term.