Shiba Inu Whales Refrain From Trading But For Good Reasons

Leading meme coin Shiba Inu (SHIB) has witnessed a significant decline in large-holder coin flow to exchanges in the last week.

Shiba Inu (CRYPTO: SHIB) has seen a large decrease in the flow of coins from large holders to exchanges over the past week, thanks to the coin’s steady price decline.

At time of writing, SHIB trades down nearly 10% over the past seven days and trades at $0.0000152.

Shiba Inu Whales Refrain From Trading But For Good Reasons

As SHIB has fallen in value over the past few weeks, large holders, or whales, have reduced their trading activity to avoid adding to their losses.

According to on-chain data, the coin’s large holder netflow has plummeted by over 500% over the past seven days.

This metric showcases the net amount of tokens that large holders are transferring into or out of exchanges. Surges in the metric show that more tokens are being moved from the wallets of large holders on exchanges, typically suggesting that these holders may be preparing to sell their tokens, which could lead to an increase in selling pressure.

On the other hand, decreases in the metric suggest that large holders are moving their tokens out of exchanges, possibly to be held for a longer duration of time. This is often due to market uncertainty or the holders simply waiting for a better opportunity to enter new positions.

See More: Get An Edge On The Crypto Market With Benzinga Pro

The reasoning behind the whales’ strategy is clear. SHIB has seen a large majority of its daily trades end in losses for traders on a daily basis.

An analysis of the altcoin’s ratio of daily transaction volume in profit to loss, using a seven-day moving average, shows that for every SHIB transaction that has resulted in a loss over the past week, only 0.57 transactions have been profitable.

This metric suggests that SHIB traders have made more losses than profits in the last week.

SHIB Price Prediction: Coin Trades Below Key Moving Average

SHIB’s steady price decline has caused its price to fall under its 20-day exponential moving average (EMA), which measures its asset’s average price over the past 20 trading days.

When an asset’s price falls below this level, it signals a sustained decline in buying pressure. If this trend continues, SHIB’s value may dip to $0.0000151.

See More: Shiba Inu (SHIB) And Dogecoin (DOGE) Now Accepted At Over 200 Regal Theaters Nationwide: Details Here

However, if a price rebound backed by sufficient demand occurs, the coin’s value may climb to $0.0000185.

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