The popular meme coin centered around dogs, Shiba Inu, has seen a drastic fall in whale net flows, indicating a shift in attitude among large-scale investors. This significant drop could have serious consequences for the price of the meme coin, particularly as Shiba Inu has faced substantial downward pressure in recent months.
Shiba Inu Whale Net Flows Plummet
Recent data from IntoTheBlock reveals a significant drop in the whale net flows for Shiba Inu. Earlier this month, reports highlighted that SHIB recorded a 7-day peak in its large transaction volume, with over 3.5 trillion SHIB tokens moving between various wallets.
Nonetheless, IntoTheBlock has now indicated that Shiba Inu whale net flows have plummeted by over 30,000%. Whale net flows serve as a key indicator for monitoring the movement of large sums of cryptocurrencies among wallets. In Shiba Inu’s case, a notable downturn in this metric implies that these “whales” or major investors are either divesting or scaling back their holdings, signaling a potential drop in confidence.
Furthermore, the unexpected dip in whale net flows may suggest that traders are swiftly cashing in on Shiba Inu’s recent price uptick. Earlier this year, SHIB was recognized as one of the top meme coin performers, experiencing substantial price advancements that brought it to new peaks.
After this brief surge, the cryptocurrency swiftly turned bearish, suffering considerable price drops and increased market volatility. This significant price correction could explain why major investors are now withdrawing from Shiba Inu, resulting in a decline in whale net flows.
As a meme coin, Shiba Inu is highly speculative and reacts swiftly to market sentiment fluctuations. Thus, monitoring whale activities is crucial, as these sizable transactions can often sway retail investor sentiment. Accordingly, the recent downturn in whale net flows might undermine confidence in SHIB, possibly leading to a wider sell-off among investors.
Despite this bearish trend, Shiba Inu continues to see a remarkable rise in large transaction volumes. Over the last 24 hours, the meme-centric cryptocurrency recorded a total volume of 1.78 trillion SHIB tokens.
Is A Price Drop Imminent?
The surprising fall in whale net flows could significantly impact Shiba Inu’s price trends, especially considering the current volatility in the cryptocurrency market. According to CoinMarketCap, SHIB is currently trading at $0.000013, reflecting a decline of over 84% from its all-time high in 2021.
While the dip in Shiba Inu’s whale net flows might be seen as a bearish indicator, the cryptocurrency’s future performance is also reliant on various additional factors. Positive developments in the market could lead to a more optimistic outlook for the cryptocurrency’s price.
Currently, however, Shiba Inu displays signs of extreme bearish sentiment, with its large transactions and net network growth both showing red.
Featured image created with Dall.E, chart from Tradingview.com
