Shiba Inu (SHIB), a popular memecoin, has done just that experienced a remarkable decline. It fell by almost 20% in the past week and continued to fall by 13% in the past 24 hours. This downturn comes amid a broader bearish trend in the crypto landscape.
However, detailed analysis of the chain has revealed specific factors contributing to SHIB’s sharp decline.
Whale movements and market influence
Insights from IntoTheBlock have shed light on large transaction activity, often indicative of ‘whale’ movements, which have seen a general decline since March 5, adding to the downward pressure on SHIB’s price.
The role of speculative trading in affecting SHIB’s market performance has also become increasingly apparent. Data pointing to the holding life of traded coins suggests a shift towards short-term trading strategies among investors, possibly in pursuit of quick profits.
Such behavior is underlined by a significant reduction in the average holding period of coins, from four weeks to just two months from mid-March, accompanied by a transaction volume of 2.12 trillion SHIB.
This trend toward speculative trading has been a major driver behind the memecoin’s recent price movements and reflects broader dynamics within the cryptocurrency market.
The decline in large transactions involving Shiba Inu means declining confidence among whales, whose actions can have a profound impact on market direction.
The observed decline in whale activity is consistent with a broader caution in the crypto market, where investors are reevaluating their positions amid changing market conditions.
Shiba Inu bright horizon
Despite the current downturn, Shiba Inu remains a focal point within the altcoin sector, supported by optimistic predictions from crypto analysts.
Michaël van de Poppe, a renowned figure in the crypto analytics community, recently posited that altcoins are headed for significant rallies, potentially positioning Shiba Inu for a notable recovery as the market stabilizes.
There is still about 40-60% market cap to be gained for the #Altcoins.
That will be a fun ride for the altcoins in the coming period. pic.twitter.com/qT0FRU4qpY
— Michaël van de Poppe (@CryptoMichNL) March 7, 2024
This sentiment is echoed by Shiba Inu co-founder Shytoshi Kusama, who has expressed confidence in SHIB’s ability to lead in the next bull market, citing the comprehensive plans, community support and project execution as the most important differentiating factors.
No. The community with the strongest technology, vision, plan, supporters, partners and execution will. #SHIB But if you want some impressions, why not say hello? https://t.co/jc6qJ11GJ6
— Shytoshi Kusama™ (@ShytoshiKusama) March 6, 2024
Regardless, SHIB has continued its bearish trajectory, with its market price now at $0.00002916 at the time of writing.
Featured image from Unsplash, chart from TradingView
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