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Data from Santiment suggests heightened volatility for Shiba Inu in the coming days, following a rapid rise in whale transactions and exchange reserves.
Notably, the market intelligence platform shared this in an X post, highlighting renewed whale activity in the Shiba Inu ecosystem. Specifically, large SHIB holders shifted the token at levels last seen six months ago, coinciding with an exchange reserve boost.
Whale Transaction Spike to Six-Month High
The Tuesday tweet stated that Shiba Inu recorded 406 whale transactions yesterday, each valued at over $100,000. This level of whale transaction is the highest since June 6th, indicating renewed interest in the asset.
Notably, this spike in whale activity suggests a significant shift in SHIB tokens to new locations. However, it does not explicitly identify the direction of this move. Such moves usually highlight two things: either whales are withdrawing from exchanges in large amounts to self-custody wallets, or they are moving to new addresses and exchanges.
1.06T Shiba Inu Exchange Boost Provides Perspective
Meanwhile, Santiment identified that this whale activity coincided with a staggering 1.06 trillion Shiba Inu addition to exchange reserves. The net change in the SHIB balance suggests that the whale transactions were actually large holders moving their holdings to exchanges.
While this does not directly translate into sell-offs, it puts pressure on the Shiba Inu supply, as holders could easily exchange them for stablecoins, fiat, or other cryptocurrencies. As such, Santiment advised caution, noting that SHIB could see increased volatility in the coming days.
Shiba Inu Pumps then Drops
Remarkably, Shiba Inu has already seen notable price moves over the past 24 hours. The meme coin joined a broader rally yesterday, spurred by Bitcoin’s brief climb to $94,000.
SHIB moved from an intraday low of $0.00000842 to a high of $0.00000905, representing a 7.4% growth. However, it pulled back slightly to close at $0.00000873. So far today, it has further relinquished most of those gains, dropping 1.49% to its current price of $0.00000859.
Notably, SHIB trades at a level that BingX advisor Nebraskan Gooner brands as dead. He suggested there is not much to expect from Shiba Inu unless it reclaims the resistance zone between $0.000014 and $0.00001.
Given its correlation with the broader market, Bitcoin would need to remain stable for this move to occur. Meanwhile, if things go sideways, analysis has highlighted $0.0000060 as the next major support area to watch.