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- Shiba Inu (SHIB) has seen a significant decrease in coin flow from large holders to exchanges amidst a prolonged decline in its value.
- The 500% reduction in SHIB’s large holder netflow over the past week suggests cautious trading behavior among major holders, possibly aimed at mitigating further losses amid market uncertainty.
Shiba Inu (SHIB), a prominent meme coin, has experienced a notable decrease in the flow of coins from large holders to exchanges over the past week.
This trend coincides with a steady decline in SHIB’s value in recent weeks. As of press time, it is trading 7.70% down at $0.00001374 with a market cap of $8.18 billion and daily trading volumes shooting by 70% to more than $509 million.
Shiba Inu Whale Activity Drops
Due to the recent decline in SHIB’s price over the past few weeks, large holders of the meme coin have reduced their trading activity to avoid further losses.
According to on-chain data, SHIB’s large holder netflow has dramatically decreased by 500% within the last seven days. This metric measures the net amount of tokens that large holders move into or out of exchanges. A surge in this metric typically indicates that large holders are preparing to sell their tokens, potentially increasing selling pressure.
Conversely, a decline in the netflow suggests that large holders are withdrawing their tokens from exchanges, possibly indicating a strategy to hold them for the long term amid market uncertainty or while awaiting better entry opportunities.
The strategy behind the whales’ reduced activity is driven by the substantial losses incurred by daily traders due to SHIB’s price drop. Analysis of the altcoin’s ratio of daily transaction volume, using a seven-day moving average, shows that for every transaction resulting in a loss over the past week, only 0.57 transactions have been profitable.
This shows that SHIB traders registered more losses than profits last week. In another development, Robinhood, a leading financial services platform, expanded its cryptocurrency trading services to include Hawaii, Puerto Rico, and the U.S. Virgin Islands. This expansion enables residents of these regions to trade Shiba Inu (SHIB) and other digital assets. The move aims to increase SHIB’s visibility and promote its adoption in these areas, per the CNF report.
SHIB Price Prediction
SHIB’s consistent price decline has pushed it below its 20-day exponential moving average (EMA), indicating the asset’s average price over the past 20 trading days.
This drop below the EMA typically suggests a reduction in buying momentum. Should this trend persist, SHIB’s price could decline to around $0.0000151.
On the other hand, crypto exchange Coinbase is planning to list SHIB futures by July 15 and has applied for an application with the CFTC, per the CNF update.
Shiba Inu’s marketing executive has recently underscored the notable strides the project continues to achieve. Key highlights of success include expanding partnerships and the ongoing development of Shibarium. Crypto News Flash reports that these advancements mark significant milestones in Shiba Inu’s journey toward enhancing its ecosystem and broader market presence.
