As we delve into the world of cryptocurrencies, one digital asset that’s been garnering notable attention recently is Shiba Inu, often identified by its ticker symbol, SHIB. This meme-inspired cryptocurrency has experienced a considerable price dip, which, according to on-chain data, can be attributed to increased selling by large-scale investors, often referred to as “whales”. This exodus of Shiba Inu whales has seemingly unnerved lesser investors and triggered a downward momentum in the token’s price.
Shiba Inu’s Price Plummet Attributed to Whales
Data sourced from blockchain analytics offered by IntoTheBlock highlights that whale wallets, or accounts of large-scale investors, have been selling off SHIB at a striking rate. The Large Holder Netflow, a metric that monitors the net fluctuation in holdings of these whales, records a downturn of 736.46% over the last week, and a further drop of 125.06% over the last 30 days. Put simply, these figures indicate that more SHIB coins were sold than purchased, hinting at a heavy sell-off.
The Large Holder Netflow from IntoTheBlock, which is graphically depicted in blue, demonstrates a sharp descent into negative netflow in early March. This suggests that whales have unloaded substantial quantities of SHIB, contributing to an increased selling pressure and a subsequent dip in the cryptocurrency’s price.
Adding to this concerning scenario, accounts holding SHIB tokens worth between $1-10 million have noticed their balance drop by 31.31% within a day, while those with tokens surpassing $10 million have observed a decrease of 27.99% in their balance.
Implications for Shiba Inu’s Price
The recent whale-induced sell-off has elicited a swift market reaction. The atmosphere surrounding Shiba Inu has grown increasingly bearish, with a sentiment of anxiety pervading its investor community. This has been evidenced by the Shiba Inu Fear & Greed Index entering the “Fear” sector, reflecting overall investor nervousness about this sustained downtrend.
Historically, Shiba Inu prices have faltered when whales release their holdings en masse. For instance, in early February, SHIB’s large-holder netflows abruptly shifted from a 3.5 trillion SHIB inflow to a -792.8 billion SHIB outflow within a day, triggering a dip in price. Currently, as large-scale investors continue to sell, Shiba Inu’s value has been further impacted, with a decline of approximately 11%.
At the time of writing, Shiba Inu’s price stands around $0.0000125 per token, a significant drop from the levels seen just a week ago. This current trajectory places Shiba Inu near its lowest price points in over a year. Should the whale sell-off persist, the continuing downtrend might intensify.
The technical indicators continue to paint a less than optimistic picture. SHIB’s daily Relative Strength Index (RSI), a metric gauging momentum, is hovering in the mid-30s, suggesting that the coin is inching towards oversold levels, indicating that bears have the upper hand presently.
FAQs:
What Is the Current Trend in Shiba Inu?
Shiba Inu is currently facing a downward trend caused by large-scale investors or ‘whales’ selling off their holdings. Its price has declined significantly, with further drops anticipated if the sell-off continues.
What Is the Large Holder Netflow?
The Large Holder Netflow is a metric that tracks the net change in holdings of large-scale investors, or ‘whales’. A negative figure indicates more coins being sold than bought.
What Is the Fear and Greed Index?
The Fear and Greed Index represents investor sentiments towards a particular cryptocurrency. A dip into the ‘Fear’ category indicates growing anxiety among investors, usually linked to a price downtrend.
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Removed: Also read: FansTime FTI Price in USD.
As we wrap up, it’s crucial to remember that while the current market conditions may not seem promising for Shiba Inu, the nature of cryptocurrencies is inherently volatile. Prices can rebound just as quickly as they plummet. Hence, vigilance, patience, and informed decision-making are key to success in the crypto investment world.
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