Shiba Inu (SHIB), the popular meme coin, has seen a curious trend emerge over the past month. While whale activity has surged significantly, the price has defied expectations and actually dipped by nearly 10%. This begs the question: are whales barking up the wrong tree, or is a price surge just around the corner?
Whales Flock to SHIB, But Price Stays Grounded
Trading around $0.000025 at the time of writing, SHIB briefly touched a high of $0.000028 on May 29th before falling back. However, the real story lies in the significant increase in large SHIB transactions.
The number of daily transactions between $100,000 and $1 million has skyrocketed by a whopping 238% in the last month. Similarly, transactions valued between $1 million and $10 million have also spiked by 50%. This surge in whale activity suggests growing interest from major investors, potentially fueled by optimism about the asset or the broader market.
While SHIB experienced a rise in whale activity, it seems the meme coin party might have passed it by. Unlike other meme coins like Pepe (PEPE), dogwifhat (WIF), and Floki (FLOKI) that enjoyed significant price jumps in May, SHIB remained stagnant due to low demand.
This lack of demand is further emphasized by the recent drop in active and new SHIB addresses by 13% and 9%, respectively, within the last week. A decline in these metrics often indicates a shift in market sentiment from positive to negative.
Also Read: Beware of Canine Con Artists: Fake Shiba Inu Tokens on the Prowl for SHIB Holders’ Leash!
Technical Indicators Hint at a Potential Downturn
Technical analysis paints a potentially concerning picture for SHIB. The Parabolic Stop and Reverse (SAR) indicator, which helps identify potential trend reversals, currently has its dots positioned above the price. This is a bearish sign, suggesting a potential price decline.
Further adding to the bearish outlook, the Moving Average Convergence Divergence (MACD) indicator displayed an upward intersection of the signal and MACD lines on June 2nd. This crossover typically signifies a short-term price decline, with the short-term average falling below the long-term average.
Will Whales Steer the SHIB Ship?
Only time will tell if the recent surge in whale activity translates to a price increase for SHIB. The current technical indicators and low demand suggest a potential price drop. However, the cryptocurrency market is known for its volatility, and unforeseen developments could still trigger a rally. Investors interested in SHIB should closely monitor market trends and conduct thorough research before making any investment decisions.
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