Over the past 24 hours, dog-themed cryptocurrency Shiba Inu (SHIB) has seen a significant drop in its large transaction volume, a metric denoting whale activity, sparking questions about what might be driving this slowdown.
According to recent IntoTheBlock data, the volume of Shiba Inu large transactions, defined as those over $100,000, has dropped by 76.21% in the last 24 hours, amounting to just 1.9 trillion SHIB, or approximately $54.1 million in value.
Over the same 24-hour period, Shiba Inu’s price has dropped by 2.05%, now trading at $0.00002744. Additionally, its trading volume has dropped by 9.05%, amounting to $854 million per CoinMarketCap data. The drop in large transaction volume and trading activity might reflect the cautious sentiment in the market aligning with profit-taking.
The crypto market rebounded in Wednesday's trading session, and SHIB wasn't left out. Shiba Inu declined for two consecutive days at the start of the week, hitting a low of $0.0000242 on Tuesday before recovering.
SHIB’s price and volume drop might suggest the token is entering a consolidation phase following its recent price increase, which saw it reach highs of $0.0000334 on Dec. 8. A drop in large transactions amid the cool-off might occur as traders and investors hold off on significant moves.
Recent price movements may have prompted short-term traders to lock in profits, leading to a temporary lull in large transaction volumes.
SHIB price action
Shiba Inu's price rebound paused at the $0.000030 level on Dec. 12, signaling that bears are selling on rallies.
The RSI has returned to the midway, indicating a balance of supply and demand. Shiba Inu may remain rangebound between the 50-day SMA of $0.0000244 and the overhead resistance of $0.00003344.
Buyers will have an advantage if they push the price above $0.00003344. Shiba Inu might rise to $0.000039 and then to $0.000046. The advantage will shift in favor of the bears if the SHIB price falls below the 50-day SMA.
It is expected that confidence might improve if the United States Federal Reserve decreases interest rates at its Dec. 18 meeting. On the other hand, if prices maintain their declines, support is envisaged near the daily SMA 50 at $0.0000244.
