After a major correction in the ATH and Shiba Inu (SHIB) since the recent increased buying activity, whales are swarming the meme coin as a large transaction percentage drops and trading volumes hit new lows, according to crypto analyst Arman Shirinyan. I decided to drop it.
Fewer whale-level transactions on the Shiba Inu network
The analyst states that according to on-chain data, the percentage of large transactions on the Shiba Inu network has decreased by more than 7%, which is considered a significant decrease in the number of transactions. A decrease in the number of transactions is generally considered a bad sign for relatively small cryptocurrencies. On the other hand, large transactions, also known as whale-level transactions, are welcomed by the community as they are signals of positive market traction.
As you know from news, whales, unlike individual traders, are people who change current trends by making large trades in favor of the price of cryptocurrencies. The analyst says the large number of whale-level transactions is a positive sign, as the SHIB has been steadily moving down since late October. The analyst shares the following information:
Along with reducing the number of large transactions, the trading volume on Binance has also decreased significantly, reaching the number of “front pumps” of five trillion coins moved in one day.
According to the analyst, a significant volume drop is due to waning interest in the meme-based token after losing almost 40% of its value relative to the previous ATH. In the midst of the cryptocurrency market correction last week, SHIB lost nothing of its value and remained at the November 8 level. The analyst states that overall, the token’s price decline has slowed, with average daily volatility decreasing by around 10%.