Shiba Inu (SHIB) has witnessed a significant drop in whale activity, with large transactions falling to 500 billion SHIB over the past seven days. This sharp decline contrasts with the previous high levels of activity, which regularly exceeded four trillion SHIB. The reduction in whale participation marks a notable shift in the token’s trading volume.
Impact of Whale Retreat on Price Movements
Whales, who hold substantial portions of SHIB’s circulating supply, often influence the token’s price trends. A decline in their activity hints that these major players may be losing interest or waiting for more favorable market conditions.
SHIB/USDT Chart Source: TradingView
Their reduced participation could have a significant impact on SHIB’s future price movement. Without these large trades, Shiba Inu’s liquidity might decrease, making the token more sensitive to price swings.
Increased Volatility Due to Lack of Whale Influence
As whale activity slows, smaller retail trades could have a larger effect on the market, increasing price volatility. This shift may make it harder for SHIB to maintain its current price or achieve upward momentum.
Related article: Shiba Inu Burn Rate Jumps 7,911%: Is a Price Breakthrough on the Horizon?
Whale traders typically inject large sums of capital, helping to stabilize and lift the market. Without them, Shiba Inu might face increased selling pressure, particularly if broader market conditions worsen.
Retail Traders Hold the Key to SHIB’s Stability
Although whale activity has dropped, SHIB’s price may not necessarily plummet. Retail traders continue to play a major role in driving the token’s price.
Related article: Shiba Inu Partners with Mass to Build Next-Gen Financial Layer
Shiba Inu’s strong community could help maintain demand, even as whale influence diminishes. Meanwhile, If retail interest increases, it could offset the decline in large transactions.
We are on twitter, follow us to connect with us :- @FXCryptoNews
— FXCryptoNews (@FXCryptoNews) December 14, 2023
While reduced whale participation is worth monitoring closely, SHIB may still find a way to stabilize and avoid significant losses.
