Popular meme coin Shiba Inu (SHIB) has witnessed a 21% price drop over the past month. This decline is attributed to the general market downturn and a decrease in SHIB whale activity during that period.
On-chain data reveals that SHIB large holders have significantly reduced their holdings in the past 30 days.
Shiba Inu Whales Dump Holdings
According to IntoTheBlock’s data, the past month has seen a daily decline in large transactions involving SHIB. For context, the daily count of SHIB transactions worth between $100,000 and $1,000,000 has decreased by 46% over the past 30 days. Additionally, transactions worth between $1,000,000 and $10,000,000 have seen their daily count reduce by 64% during the same period.
The decline in an asset’s large transaction count is a bearish signal. When retail investors observe large investors decreasing their trading activity, it often undermines their confidence, leading to reduced buying activity and potential price declines.
Further, the decline in SHIB’s Large Holders’ Netflow confirms that whale addresses holding the meme coins have sold more than they accumulated during the period under review. According to IntoTheBlock, SHIB’s Large Holders’ Netflow has fallen by 391% in the past 30 days.
Read more: Shiba Inu — A Beginner’s Guide
Large holders are whale addresses that hold over 0.1% of an asset’s circulating supply. Their netflow measures the difference between the coins these investors buy and the amount they sell over a specific period.
When this metric drops, it signals that whale addresses are selling their holdings. This bearish sign often precedes a market-wide decline in coin accumulation.
SHIB Price Prediction: Is a Fall Below $0.000010 Likely?
Readings from SHIB’s daily chart suggest that the meme coin might be poised for a rebound. As of this writing, the values of its Relative Strength Index (RSI) and Money Flow Index (MFI) are 30.23 and 22.45, respectively.
The key momentum indicators measure an asset’s oversold and oversold market conditions. At their current values, SHIB’s RSI and MFI signal that the meme coin is approaching an oversold condition. An oversold condition often precedes a price reversal, meaning the asset’s price might increase in the near future.
Read more: 12 Best Shiba Inu (SHIB) Wallets in 2024
If this happens, SHIB’s price may climb to $0.000018. However, if selling intensifies, the coin risks falling below the $0.0000010 price region.
Disclaimer
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