Shiba Inu whales move 1.52 trillion SHIB overnight, meme coin gears for recovery
- Shiba Inu has registered a spike in large volume transactions in the last 24 hours.
- SHIB tokens worth $11.11 million were moved in whale transfers, signaling increase in user activity.
- SHIB price climbed nearly 5% since September 11 low of $0.00000695.
Shiba Inu, one of the largest meme coins in the crypto ecosystem, seems to be gearing towards a price recovery, according to the latest on-chain developments. Large volume transfers initiated by whales moved 1.52 trillion SHIB tokens in the past 24 hours.
Also read: Chainlink could face increased selling pressure as $100 million worth of LINK tokens hit exchanges
Shiba Inu large transaction volume likely to fuel volatility in SHIB
Large transaction volumes are typically associated with volatility in the asset’s price, particularly in days of thin trading. In the case of SHIB, based on data from crypto intelligence tracker IntoTheBlock, the total volume of token transfer in the last 24 hours accounts for 1.52 trillion SHIB.
Large transaction volume in Shiba Inu
SHIB tokens worth $11.11 million were moved across the chain. Such moves signal an increase in user activity, which in thinly traded days can bring a spike in volatility in the asset’s price in either direction. In Shiba Inu’s case, it is possible that the price reaction is to the upside as the meme coin has gained 5% from September 12, when it posted a three-month low of $0.00000695.
The meme coin’s price has been in a downward trend since August 12. At the time of writing, SHIB price is below its three long-term 10-day, 50-day and 200-day Exponential Moving Averages (EMA) at $0.00000738, $0.00000795 and $0.00000890, respectively.
Events like the relaunch of the Shibarium network after the botched first attempt and the mass burn of SHIB tokens have failed to catalyze a recovery in SHIB price. The spike in large transactions by whales could push the meme coin higher, supporting a decisive break out of the downward trend.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
