Recent on-chain data shows that Shiba Inu (SHIB) whales may have contributed to the recent decline in its price. The meme coin’s recent decline has put its blue-chip status in doubt, although this trader is still confident in Shiba Inu’s potential.
Shiba Inu Large Transactions On The Rise Amid Market Decline
Data from the market intelligence platform IntoTheBlock shows that the number of Shiba Inu large transactions has increased by over 400% in the last 24 hours. These large transactions involve ones worth $100,000 or more, and they are more significant considering that they come amid a recent decline in the market.
Such whale activity is usually regarded as a positive development, considering that the coin’s price could rise if these whales were accumulating the token rather than looking to offload their holdings. In this case, the increase in large transactions amid this market downtrend could mean either that the whales were adding to their positions or looking to cut their losses and were offloading their tokens.
Further data from IntoTheBlock shows that the latter is likely the case and that these whales are offloading their Shiba Inu holdings. The Large Holders Netflow metric shows a decrease in the number of tokens these whales hold, with 392.7 billion tokens being moved from wallets holding 0.1% of Shiba Inu’s supply.
These tokens are believed to have been moved to exchanges as these whales look to cut their losses in fear that the meme coin could further decline. Their actions have, however, only caused Shiba to experience more price drops, with the meme coin now below the critical resistance level at $0.00002.
Shiba Inu’s recent drop also caused the meme coin to lose a considerable portion of its market cap as it dropped to Tron in the crypto ranking by market cap and is now the twelfth largest crypto token by market cap.
SHIB Isn’t Going Anywhere
Crypto analyst Vapor recently suggested that Shiba Inu remains a major player ahead of the altcoin season and that the meme coin won’t lose its blue-chip status. Instead, he predicted that this blue-chip status would make Shiba Inu stand out in this market cycle and make a massive run during this meme supercycle.
Vapor further claimed that blue-chip meme coins like Shiba Inu have several advantages, making them arguably the “comfier candidates” to hold for a future altcoin season. He stated that there are good reasons to believe that Shiba Inu will benefit the most from this upcoming altcoin season.
According to Vapor, the “arbiter of truth” will remain mass retail, and they will likely pick a meme coin like Shiba Inu, which is listed on tier-1 centralized exchanges, just like they did in 2021.
Featured image created with Dall.E, chart from Tradingview.com
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