Large-holder transactions in Shiba Inu (SHIB) have decreased by 79% in the past three months, reflecting reduced institutional confidence in the asset.
Decline in Shiba Inu Whale Activity
According to analysts, transactions over $1 million have sharply decreased, contributing to weaker market conditions. Lower high-value trades indicate that major investors are either reducing their holdings or pausing further accumulation. This has resulted in reduced liquidity, leading to increased volatility in SHIB’s price movements.
Impact of Major Outflows on the Market
Data from Coinglass highlights that capital outflows, especially those exceeding $30 million, have intensified SHIB's price decline. The largest outflow event, surpassing $50 million in November, further contributed to SHIB’s downward trend. SHIB currently shows a price of $0.00001523, with a 2.48% drop since yesterday and a 9.58% decline over the past week. The amalgamation of a market cap at $8.97 billion and a trading volume of $229.2 million reflects ongoing market-selling conditions.
Technical Analysis and Market Conditions
The bearish market sentiment is supported by technical indicators. The Relative Strength Index (RSI) currently measures 39.62 as it gets close to oversold levels. A rise of the asset above 50 would confirm a shift in market momentum, but the current RSI suggests market susceptibility to price inversion.
The SHIB market faces challenges due to decreased whale activity and prevailing bearish technical indicators. Stability may require a return of large investors to the market.
