Shiba Inu whale-level transactions are an important indicator for market activity and asset health. However, as we are seeing now, major 24-hour trading volume has plummeted to below 1 trillion tokens, while reaching 7.49 trillion earlier this week.
According to recent online data from IntoTheBlock, the number of large transactions involving Shiba Inu has plummeted. Only 45 large transactions were made in the past 24 hours, down significantly from the seven-day high of 285 transactions on June 18.
The sharp drop in trading volume coincided with a decline in the total number of transactions, from a peak of 7.68 trillion SHIB at the beginning of the week to only 747.97 billion SHIB in the past 24 hours. Large transaction volume represents the total amount of SHIB transferred in these transactions.
This decline is worrying because it represents a significant decline in the activity of whale investors, who are often considered the main drivers of notable market movements. This decline may be the result of many factors. First, large investors may be less interested in the Shiba Inu due to the general decline in market sentiment.
As the Shiba Inu chart indicates, the asset's price is falling below key moving averages and it seems the trend is towards this token. Poor trading activity is reflected by the RSI falling into the "oversold" zone on relatively low volume. Furthermore, the rate is moving below long-term moving averages such as 200 and 100, which is a sign of strong bearish sentiment.
More ramifications could arise for the Shiba Inu market due to reduced large trading volumes. SHIB's liquidity could be affected due to fewer large transactions, which would increase its sensitivity to price fluctuations. Further decline in SHIB price could be due to lack of significant buying activity from whale investors as selling pressure will be less.
