According to U.Today, the on-chain data for Shiba Inu is indicating a downward trend among whales, with the volume of large transfers significantly decreasing. This has raised questions about the recovery potential of Shiba Inu. Over the past week, there has been a sharp decline in the number of large Shiba Inu transactions. Compared to the seven-day peak of 285 transactions on June 18, 2024, there were only 117 large transactions 24 hours ago. This suggests that major market players are either reducing their activities or selling their SHIB holdings.
In addition, there has been a significant drop in the volume of large transactions in USD. Approximately $2.93 trillion SHIB worth of large transactions were completed in the last 24 hours, while on June 13, 2024, the seven-day high reached 8.33 trillion SHIB. The lack of strong buying pressure from major investors is reflected in the downward trend of transaction volumes, which could indicate a weakness in the price of SHIB.
An analysis of the SHIB/USDT chart reveals that SHIB has been trading below its key moving averages, indicating a market downtrend. The price has fallen significantly below its previous support levels, even with a minor rebound. The recent drop below $0.00002 suggests that SHIB is in the oversold area with an RSI of about 36. This may attract some bargain hunters, but the overall sentiment remains negative.
The decrease in large transaction volume and the negative sentiment among whales suggest that Shiba Inu currently has a limited chance of recovery. Without substantial buying activity from major investors, SHIB may struggle to return to its previous highs. A more significant rebound would require a change in sentiment and an increase in large transaction volumes, indicating renewed interest from key market participants.