The popular dog-themed meme coin, Shiba Inu, has experienced a major crash in the current of whale nets, indicating a change in sentiment among large-scale investorsThis sharp drop could have significant implications for the meme coin’s price, especially since Shiba Inu has been hit hard. downward pressure in the past few months.
Shiba Inu whale net currents take a nosedive
New facts from IntoTheBlock show a major drop in whalenet flows related to Shiba Inu. Earlier this month, reports revealed that SHIB had reached a 7-day high in its large transaction volume, more than 3.5 trillion SHIB tokens be transferred across different wallets.
However, IntoTheBlock has now revealed that Shiba Inu Whale net flows have dropped by over 30,000%. Whale net flows is a metric typically used to track the movement of large amounts of cryptocurrency between wallets. In the case of Shiba Inu, a significant drop in this metric suggests that these so-called “whales” or large-scale investors are either sell or reduce their assetswhich may indicate a possible decline in confidence.
Furthermore, the unexpected drop in whale net flows could be an indication that investors are quickly taking profits from the recent rise in the price of Shiba Inu. At the beginning of the year, SHIB was one of the best performing meme coinswith huge price increases being recorded reaching new heights.
After the short-lived rally, the cryptocurrency quickly turned bearish, who are faced with significant price drops and increased market volatility. This massive price correction may be the reason why large-scale investors are now withdrawing from the Shiba Inu market, leading to a decline in whale net flows.
As a meme currency, Shiba Inu is highly speculative and prone to changes in market sentiment. Therefore, it is important to monitor whale movements, as these large-scale transactions often influence retail investor sentiment. As a result, the recent decline in whale net flows could undermine confidence in SHIB, potentially leading to a broader sell-off among investors.
Despite this bearish trendShiba Inu continues to experience a significant increase in large transaction volumes. In the past 24 hours, the meme-based cryptocurrency has registered a total volume of 1.78 trillion SHIB tokens.
Is a price drop coming?
The unexpected decline in whale net flows could have a drastic effect on Shiba Inu Price Dynamicsconsidering how fragile the cryptocurrency market is right now. CoinMarketCap reports that SHIB is currently trading at $0.000013, down over 84% from its all-time high in 2021.
While the shift in Shiba Inu whale net flows can be interpreted as a bearish signal, the future performance of the cryptocurrency also depends on several other factors. Positive changes in the market could lead to a more favorable prospects about the price of the cryptocurrency.
However, currently Shiba Inu is showing signs of extremely bearish activitywith large transactions and net network growth in the red.
Main image created with Dall.E, chart from Tradingview.com