According to U.Today, Shiba Inu (SHIB) is experiencing a significant decline in its large transaction volume. On-chain data reveals that the volume of whale transactions has dropped below 500 billion SHIB in the last day, currently standing at 365.69 billion SHIB. This reduction in transaction volume could lead to liquidity issues and potential price reversals in the near future. Additionally, the number of large transactions has decreased to a seven-day low of 15, compared to a seven-day high of 75 transactions on July 22, 2024, as per IntoTheBlock's analysis of on-chain metrics.

The decline in whale activity is concerning for SHIB's price and liquidity support, as it reflects a decrease in both transaction volume and the number of large transactions. SHIB's price action has formed a descending wedge pattern, which often indicates potential volatility and a bullish breakout if the price breaks above the upper trendline. However, the current state of SHIB presents a mixed outlook. The price has struggled to rise above key moving averages, which act as resistance levels.

Technical indicators highlight SHIB's precarious position. For a bullish reversal to occur, SHIB must surpass both the 50-day and 100-day Exponential Moving Averages (EMA). Currently, the price is trading near the lower bound of the falling wedge, suggesting that if the bearish sentiment persists, the downtrend may continue.