Recent on-chain data shows that Shiba Inu Whales (SHIB) may have contributed to the recent drop in its price. The recent meme coin crash has put its frontline status In doubt, although this trader is still confident in the Shiba Inu's potential.
Big Shiba Inu Transactions Rise Amid Market Crash
Data from the IntoTheBlock market intelligence platform shows that the number of large Shiba Inu transactions has increased by more than 400% in the last 24 hours. These large transactions involve transactions worth $100,000 or more, and are more significant considering they occur amid a recent market decline.
Similar whale activity This is generally considered a positive development, considering that the price of the coin could rise if these whales were hoarding the token instead of trying to dump their holdings. In this case, the increase in big transactions Amid this downward market trend, it could mean that the whales were increasing their positions or looking to reduce their losses and were dumping their tokens.
Further data from IntoTheBlock shows that the latter is likely the case and that these whales are getting rid of their Shiba Inu possessions. The Netflow metric of large holders shows a decrease in the number of tokens held by these whales, with 392.7 billion tokens moved from wallets containing 0.1% of Shiba Inu Supply.
These tokens are believed to have moved onto exchanges as these whales look to cut their losses out of fear that the meme coin could fall further. However, his actions have only caused Shiba to experience further price declines, with the meme coin now below the critical resistance level of $0.00002.
The recent crash of Shiba Inu also caused the meme coin to lose a considerable portion of its market capitalization, as it fell to Tron in the ranking of cryptocurrencies by market capitalization and is now the 12th largest crypto token by market capitalization.
SHIB is not going anywhere
Vapor Cryptographic Analyst recently suggested that Shiba Inu is still a major player ahead of the altcoin season and that the meme currency will not lose its top-of-the-line status. Instead, he predicted that this top-of-the-line status would make Shiba Inu stand out in this market cycle and have a massive run during this meme supercycle.
Vapor further stated that top-line meme coins like Shiba Inu They have several advantages, making them possibly the “most comfortable candidates” for a future altcoin season. He stated that there are good reasons to believe that Shiba Inu will benefit the most from this upcoming altcoin season.
According to Vapor, the “arbiter of truth” will continue to be mass retailand they will probably choose a meme coin like Shiba Inu, which trades on Tier 1 centralized exchanges, just as they did in 2021.
Featured image created with Dall.E, chart from Tradingview.com
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