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While the broad crypto market has flipped bullish with major cryptocurrencies showing strength in important metrics over the last day, $SHIB has continued to show signs of weakness following recent data provided by blockchain analytics platform IntoTheBlock.
$SHIB whales pull back
After achieving a massive spike of 24.3 trillion $SHIB in large transaction volume on June 5, whales have pulled back significantly with only 2.06 trillion $SHIB flowing into the wallets of $SHIB large holders over the last 24 hours.
This has seen the popular dog-themed meme token record a massive 91.5% drop in $SHIB’s large transaction volume in just 4 days.
While large transaction volumes are often measured by $SHIB transfers of over $100,000, they are usually carried out by institutional investors or retail whales.
Thus, the sudden drop in large transaction volume for $SHIB suggests a significant pullback by major holders or a broader reduction in investor confidence and trading interest.
This comes as no surprise as $SHIB has consistently been trading sideways, struggling to regain its bullish momentum as hype surrounding the token appears to be cooling off.
With $SHIB’s whale activity nosediving from a massive 24.3 trillion to 2.06 trillion on June 9, the massive drop threatens $SHIB’s potential price performance, sparking concerns among investors.
While the reason behind $SHIB’s abrupt pullback in large transaction volume remains unclear, the negative metric comes despite the decent resurgence noted in the price of the token.
As of June 9, $SHIB has surged as high as $0.00001273 from a low of $0.00001235 recorded during the early hours of the day. While the token has shown resilience over the last few hours, it is trading steadily at $0.00001292 as of press time. This marks a decent surge of 1.75% over the last 24 hours.
Although the reason behind the whale activity plunge remains uncertain, the notable downturn in whale movement at a time when the market is noting a resurgence in price suggests that large holders may be adopting a wait-and-see approach.
Oftentimes, a steep drop in large transactions like this signals waning momentum or uncertainty among $SHIB holders, leaving investors to wonder about the sustainability of the ongoing price rally.