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While the broad crypto market has flipped bullish with major cryptocurrencies showing strength in important metrics over the last day, SHIB has continued to show signs of weakness following recent data provided by blockchain analytics platform IntoTheBlock.
SHIB whales pull back
After achieving a massive spike of 24.3 trillion SHIB in large transaction volume on June 5, whales have pulled back significantly with only 2.06 trillion SHIB flowing into the wallets of SHIB large holders over the last 24 hours.
This has seen the popular dog-themed meme token record a massive 91.5% drop in SHIB’s large transaction volume in just 4 days.
While large transaction volumes are often measured by SHIB transfers of over $100,000, they are usually carried out by institutional investors or retail whales.
Thus, the sudden drop in large transaction volume for SHIB suggests a significant pullback by major holders or a broader reduction in investor confidence and trading interest.
This comes as no surprise as SHIB has consistently been trading sideways, struggling to regain its bullish momentum as hype surrounding the token appears to be cooling off.
With SHIB’s whale activity nosediving from a massive 24.3 trillion to 2.06 trillion on June 9, the massive drop threatens SHIB’s potential price performance, sparking concerns among investors.
While the reason behind SHIB’s abrupt pullback in large transaction volume remains unclear, the negative metric comes despite the decent resurgence noted in the price of the token.
As of June 9, SHIB has surged as high as $0.00001273 from a low of $0.00001235 recorded during the early hours of the day. While the token has shown resilience over the last few hours, it is trading steadily at $0.00001292 as of press time. This marks a decent surge of 1.75% over the last 24 hours.
Although the reason behind the whale activity plunge remains uncertain, the notable downturn in whale movement at a time when the market is noting a resurgence in price suggests that large holders may be adopting a wait-and-see approach.
Oftentimes, a steep drop in large transactions like this signals waning momentum or uncertainty among SHIB holders, leaving investors to wonder about the sustainability of the ongoing price rally.