Shiba Inu’s large transaction volume has seen a significant decline, raising concerns about the future of the meme coin.
Data from IntoTheBlock reveals that in the last 24 hours, Shiba Inu’s large transactions have dropped by 35%, with 1.41 trillion SHIB traded, compared to 2.19 trillion SHIB the previous day. This follows a dramatic fall from the 7-day high of 4.35 trillion SHIB on February 7.
This decline is seen as a potential sign of “whale fatigue,” where large investors are pulling back, leading to reduced accumulation of SHIB.
Given that these whales significantly influence SHIB’s price movements, the lack of buying pressure may result in further downward movement, especially if sell-offs occur from holders looking to cut losses.
In addition to the drop in large transaction volumes, another concerning metric is the decrease in ‘Net Network Growth,’ indicating a slowdown in new user adoption.
This reduces the potential for future growth, leaving the coin vulnerable to further price declines. Currently, over 52% of Shiba Inu holders are in a losing position, making them more likely to sell if prices fall further.
Shiba Inu has also struggled since the start of the year, with a year-to-date loss exceeding 22%. However, crypto analysts remain optimistic about a possible rebound.
Analyst Javon Marks suggests that SHIB is forming an inverse Head and Shoulders pattern and could see a price rally of over 399%, potentially reaching the $0.000081 target. Another analyst, Shib Spain, indicates a possible bullish reversal, with SHIB possibly bouncing back to $0.000036.
As of now, Shiba Inu is trading at $0.00001656, reflecting a 6% increase in the last 24 hours.
