SHIB’s Spike in On-Chain Activity Not Being Reflected in Its Price

Recent whale activity and Shibarium developments may lead to SHIB's price breaking out to the upside soon.

Whale activity for Shiba Inu (SHIB) has experienced a dramatic rise over the past 24-48 hours. During this time, whales moved around 23 billion SHIB tokens. Meanwhile, the project’s layer-2 network, Shibarium, also achieved notable milestones recently, as the network reached 2 million daily transactions and saw the number of connected wallets reach a staggering 1,155,462.

This spike in activity within the SHIB ecosystem has had little effect on the meme coin’s price as SHIB suffered a 24-hour loss. The meme coin’ below-par price performance may soon come to an end, however, as a bullish chart pattern formed on SHIB’s daily chart. If this pattern is validated, then SHIB may look to overcome a significant resistance level in the following 2 weeks.

SHIB Whales Make a Splash

Recent data shared by Arkham Intelligence reveals that over the past 24 hours, cryptocurrency whales have made a significant splash in the SHIB market. These colossal transactions are indicative of a renewed interest in this popular meme coin, especially as the Layer-2 blockchain Shibarium gains traction in terms of utility and adoption.

In a series of four transactions, cryptocurrency whales have amassed a staggering 29.2 billion SHIB. The largest of these transactions involved a jaw-dropping 23 billion SHIB. The significance of these transactions lies not only in their size but also in their destination and origin.

The Whales’ Transactions in More Detail

The 2.5 billion SHIB were shuffled between anonymous cryptocurrency wallets, shrouding the identities of those involved. The remaining 2.1 billion SHIB were withdrawn from the well-known cryptocurrency exchange, Binance, yesterday. This hints at a possible shift in strategy by institutional or individual investors who have decided to move their SHIB holdings from centralized exchanges to more secure and private wallets.

However, the intrigue does not end there. A substantial portion of these billions of Shiba Inu meme coins, 1.6 billion SHIB to be exact, found its way between two major cryptocurrency exchanges - OKX and Kraken. This inter-exchange movement of SHIB signifies active trading and liquidity, as investors take advantage of market opportunities and arbitrage possibilities. What makes these whale movements particularly interesting is the backdrop against which they occur.

Shibarium Achieves New Milestones

Shibarium, the Layer-2 blockchain associated with Shiba Inu, is experiencing rapid growth in both utility and adoption. Recent reports highlight that Shibarium has achieved a groundbreaking milestone of more than two million daily transactions. This surge in transaction volume speaks to the increasing usage and acceptance of SHIB as a medium of exchange and store of value.

Moreover, the number of connected wallet addresses within the Shibarium ecosystem has surged to a staggering 1,155,462, signifying a growing and engaged user base. This growth is not isolated; the number of blocks produced on the network, which recently crossed the half a million threshold, is now eyeing the 600,000 mark. Such robust network activity is indicative of the blockchain's sustainability and its ability to support the growing demand for SHIB transactions.

Shiba Inu's resurgence, as evidenced by the large whale transactions and Shibarium's flourishing ecosystem, underscores the cryptocurrency's resilience and continued relevance in a highly competitive market. Investors and enthusiasts alike are closely watching these developments, eager to see how SHIB will continue to evolve in an ever-changing cryptocurrency landscape.

As the cryptocurrency market remains dynamic and unpredictable, the actions of major players, like the cryptocurrency whales, continue to shape the fate of digital assets. Whether these whales are positioning themselves strategically for future gains or simply taking advantage of market conditions, their actions highlight the enduring appeal of Shiba Inu and the growing potential of the Shibarium blockchain. For cryptocurrency enthusiasts, these developments are a reminder of the exciting journey that cryptocurrencies continue to take us on.

A Disconnect Between SHIB’s Volume and Its Price

The reshuffling by SHIB whales over the last couple of days triggered a 5x surge in large transactions for the meme coin.However, there is a surprising twist: the price of SHIB is not following suit.

Firstly, SHIB’s volume has skyrocketed, tripling in a remarkably short span of time. Ordinarily, one would anticipate the price to follow such a surge in trading activity, but this time it is different. The price of SHIB continues to dip, creating a perplexing situation for both veteran and novice investors alike. So, what could be causing this unusual decoupling of volume and price?

One possible explanation is that the whales are accumulating more SHIB at these lower prices, potentially positioning themselves for a future upswing. This scenario aligns with the notion that institutional and large investors often use market dips to accumulate assets at a discount, anticipating future gains. Alternatively, the whales might be diversifying their portfolios, strategically moving their assets around without necessarily offloading them onto the market. However, this whale activity presents a double-edged sword for the SHIB ecosystem.

On one hand, it signals that significant players are still actively interested in SHIB, which could be seen as a bullish sign for the cryptocurrency's long-term potential. On the other hand, the persistent price drop resulting from this whale activity could undermine the confidence of smaller investors, potentially leading to further sell-offs and a challenging market environment.

The Market’s Compression Phase

It is essential to acknowledge that the overall cryptocurrency market is currently in a state of heightened volatility, which may be influencing SHIB's price movements. Even cryptocurrencies like Ethereum have been grappling with price struggles despite positive news and developments. This suggests that SHIB might be caught up in a broader market trend that is affecting multiple digital assets.

The increased whale activity in the SHIB market could be a precursor to something significant, such as a price rebound, or it could simply be market noise with no immediate impact on the coin's value. Investors and enthusiasts in the SHIB community should keep a close eye on these developments, especially if they have stakes in SHIB or are contemplating entering the market.

Price Overview

The cryptocurrency price tracking website CoinStats indicated that SHIB was changing hands at $0.000007200 at press time. This was after its price had dropped 0.18% over the past 24 hours - pushing its negative weekly performance further into the red zone to -6.15%.

Price chart for SHIB (Source: CoinStats)

SHIB was able to reach a daily high of $0.00000734 throughout the past day of trading, however, but had since retraced to trade at its current level. Meanwhile, the altcoin’s 24-hour low sat at $0.00000716. Subsequently, SHIB was trading closer to its daily low at press time.

Looking at the longer timeframes, SHIB’s price had dropped 30% over the past 30 days. Similarly, the meme coin’s yearly performance stood at -44% as well.

Technical Overview

Daily chart for SHIB/USDT (Source: TradingView)

From a technical standpoint, SHIB’s lackluster price performance may soon come to an end. Adding credence to this bullish thesis is the falling wedge that had formed on SHIB’s daily chart. This chart pattern suggested that the meme coin’s price may soon break out towards the upside.

If this pattern is validated, SHIB’s price may attempt to challenge the immediate barrier at $0.00000845 in the upcoming fortnight. Thereafter, continued buy support could boost the altcoin’s price to as high as $0.00000928. Conversely, a bearish breakout in the next few days may result in SHIB’s price dropping to $0.00000700. A break below this level will then put SHIB at risk of falling to the next support level at $0.000000633.

Technical indicators on SHIB’s daily chart suggested that short-term momentum was in favor of bears at press time. Firstly, the 9-day EMA line was positioned below the 20-day EMA line. In addition to this, the RSI line on SHIB’s daily chart signaled that the meme coin was in oversold territory.

Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.