Shiba Inu (SHIB) is currently facing significant volatility, with whale activity raising alarms among investors. Recent data shows that Shiba Inu whales have doubled their trading volume in just 24 hours, a shift that could have profound implications for SHIB's price stability.
According to analytics from IntoTheBlock, the trading volume among Shiba Inu whales surged by an astonishing 117% between October 6 and 7. Initially sitting at 1.39 trillion SHIB, the total volume skyrocketed to 3.02 trillion SHIB the following day. This increase in activity was also accompanied by a 66% rise in high-value transactions, defined as trades worth at least $100,000. This uptick indicates a notable increase in participation from large holders, suggesting they may be offloading their positions as the price continues to decline.
The timing of this surge in whale activity closely aligns with the downturn in Shiba Inu's price, fueling speculation that these significant holders could be contributing to the ongoing sell-off. Should whale trading volumes decrease while the price continues to fall, it may suggest that whales are still actively selling. Conversely, if these whales pivot to buying, it could signal a potential price recovery for SHIB.
Despite the recent fluctuations, many SHIB investors remain in profit. IntoTheBlock’s analysis reveals that over 50% of all SHIB addresses are currently showing gains. In contrast, around 44% are operating at a loss, with a smaller fraction breaking even. This distribution indicates that many holders initially purchased SHIB at lower prices, providing them with a cushion against the current market downturn.
The behavior of these whales is poised to play a crucial role in determining the near-term trajectory of Shiba Inu. If whale activity stabilizes and these major holders shift from selling to accumulating, it could lead to a positive change in SHIB's market trend. However, if the trend of selling continues among these key players, it could exert further downward pressure on the meme coin's value.
As Shiba Inu navigates its current volatility, the actions of whale investors will be critical in shaping its price movements. Investors should keep a close watch on whale trading patterns, as their decisions could either stabilize the market or exacerbate the ongoing sell-off. With over half of SHIB holders still in profit, the potential for recovery remains, contingent on the behavior of these significant market players.
October 2024, Cryptoniteuae