- Shiba Inu experienced significant whale activity, raising questions about future price volatility.
- Despite increased transactions, overall network activity for SHIB showed a decline.
Shiba Inu [SHIB] has recently caught the attention of major investors, despite its current price dip. The on-chain analytics firm Santiment has reported a significant uptick in whale transactions for SHIB, hinting at possible major moves.
Whale watch: SHIB’s market stir
Despite a retracement of 2.3% decline over the past week, bringing SHIB to a trading price of $0.00002526, whale activity around this altcoin has intensified.
Santiment’s recent analysis revealed that SHIB was among a few altcoins that experienced a surge in transactions valued at $100,000 or more, an indicator often associated with substantial investor moves.
This “Whale Transaction Count” suggests that significant capital movers are actively trading or repositioning their stakes in SHIB.
Source: Santiment
Large-scale transactions like these are crucial as they imply that high-net-worth entities or ‘whales’ are taking notable positions in the coin, which could forecast upcoming volatility.
However, it’s challenging to determine whether these moves are accumulative buys or preparatory sells as the data does not specify the nature of these transactions.
The activity level of these whales can serve as a barometer for the altcoin’s potential price movements. A continued high transaction count could lead to increased price fluctuations in the near term.
Santiment’s report suggests that the current spike in whale transactions might be a sign of accumulation, where investors are possibly increasing their holdings in anticipation of future price increases.
Shiba Inu’s Active Addresses decline as Open Interest grows
However, not all indicators are bullish. The number of active SHIB addresses has seen a significant decrease, dropping from a peak of over 150,000 in March to below 30,000 currently.
This decline in active addresses could indicate waning interest or reduced overall trading activity, potentially leading to downward pressure on prices.
Source: Santiment
Meanwhile, open interest in SHIB has seen a slight increase of 2.21% over the past 24 hours, reaching a valuation of $92.22 million.
This rise in open interest, coupled with a decrease in trading volume, which has fallen by approximately 38.52% in the same period, suggests a cautious market sentiment towards SHIB.
Source: Coinglass
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Despite these mixed signals, the market is on high alert for any substantial moves.
If whale activity continues to dominate, SHIB could see significant price shifts, either retracing to support levels around $0.0000207 or, if bullish sentiments prevail, pushing towards $0.0000294 according to AMBCrypto recent report.