Shiba Inu Price Plunges: Will Crucial Support Level Reverse the Trend?
• SHIB’s market price is approaching a crucial support level, raising concerns over further drops.
• Whale activity within the Shiba Inu ecosystem has seen a notable downturn since the market crash.
• Reduced transaction volumes and large transactions by whales might lead to decreased liquidity and increased volatility.
Shiba Inu Sellers Reach Crucial Support Level
The broad market selloff led to the erasure of all gains the memecoin sector had accumulated over the past two months, causing Shiba Inu (SHIB) to experience a significant drop from its eagerly watched price point of $0.00001. Currently, its price is approaching a crucial support level, causing traders to worry about potential further drops.
Decline in Whale Activity
Data from IntoTheBlock reveals that whale activity within the Shiba Inu ecosystem has seen a notable downturn over the last few days following the market crash, with high-value transactions dropping over $130 million. The large transaction volume has dropped from a high of $139 million to just $9 million on 19 August; however, it has recovered slightly since then and is currently hovering around $44 million. This steep fall triggers concerns of further selloff by whales, which might lead to a significant drop in SHIB’s value. Additionally, there’s been a steep decline in large transactions (>$100K), with this metric dropping from around 170 to just 21. Such reduced activity from influential players could lead to decreased market liquidity and increased volatility.
Possible Causes for Drop in Activity
Whales‘ recent reduced activity in the SHIB ecosystem could be due to two possible causes: firstly, whales may be consolidating their holdings and waiting for an optimal moment for selling; secondly, they may be diversifying their investments towards other tokens or assets instead of focusing solely on SHIB.
Bulls Attempt To Push Up Price
Bulls have attempted to push up SHIB’s price above $0