Understanding the recent 12% plunge of Shiba Inu (SHIB) requires a closer look at on-chain analysis. While the broader crypto market has been experiencing a bearish trend, specific factors have contributed to SHIB’s sharp decline.
One key factor is the movements of large transactions, often associated with whales. Insights from IntoTheBlock indicate a decrease in whale activity since March 5, amplifying the downward pressure on SHIB’s price.
Additionally, speculative trading has played a significant role in influencing SHIB’s market performance. Data suggests a shift towards short-term trading strategies among investors, potentially driven by a desire for quick profits. The average holding period of coins has decreased from four weeks to just two months, accompanied by a high transaction volume of 2.12 trillion SHIB.
This trend towards speculative trading reflects the broader dynamics within the cryptocurrency market and has been a major driver behind SHIB’s recent price movements. The decline in large transactions involving Shiba Inu indicates diminishing confidence among whales, whose actions can significantly impact market direction.
Despite the current downturn, some crypto analysts remain optimistic about Shiba Inu’s future. Michaël van de Poppe, a respected figure in the crypto analysis community, predicts significant rallies for altcoins in general, potentially positioning SHIB for a notable rebound as the market stabilizes.
Shytoshi Kusama, the co-founder of Shiba Inu, also expresses confidence in SHIB’s ability to lead in the next bull market. Kusama cites the project’s comprehensive plans, strong community support, and successful execution as key differentiators.
However, SHIB’s bearish trajectory persists, with the market price hovering at $0.00002916 at the time of writing. While the altcoin sector remains a focal point, investors should conduct their own research and assess the risks before making any investment decisions.