Shiba Inu (SHIB) has seen a surge in daily transaction volume, with a whopping 5.354 trillion SHIB tokens changing hands on May 27th. This represents a staggering 169% increase compared to the previous day. However, despite the high activity, the question remains: can this translate to a sustained price increase for the memecoin?
(SHIB) Whales Making Waves
While the broader crypto market remains sluggish, Shiba Inu seems to be attracting the attention of large investors. On-chain data analysis by CryptoQuant reveals a significant increase in transactions worth between $1,000 and $10 million. Additionally, large transactions exceeding $100,000 contributed a combined volume of $91.04 million.
This suggests that “whales,” high-volume investors, are playing a more prominent role in Shiba Inu’s recent activity.
Also Read: Shiba Inu (SHIB) Aims for Long-Term Growth, Not Short-Term Hype: Marketing Lead’s Rallying Cry
Exchange Inflows Cast a Shadow
However, a closer look at the data paints a more complex picture. Even though there’s increased whale activity, IntoTheBlock (ITB) data shows a relatively low number of total transactions on May 27th – only 6,390. This discrepancy suggests the recent volume surge might be driven by fewer, larger transactions.
Furthermore, CryptoQuant data reveals a significant inflow of SHIB tokens to exchanges on May 27th, exceeding 1.46 trillion. This suggests that some whales might be depositing their tokens, potentially foreshadowing selling pressure.
Price Poised for a Breakout?
Despite the potential bearish implications, SHIB defied expectations on May 27th. The price rose by an impressive 4.89%, reclaiming the $0.000026 support level. This momentum has continued into today, with SHIB currently trading at $0.00002603.
The Verdict: Wait and See
The recent surge in Shiba Inu’s transaction volume is undoubtedly a positive sign, indicating renewed interest in the memecoin. However, the dominance of whale activity and exchange inflows introduces uncertainty.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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