On-chain data shows that Shiba Inu whales are showing interest in the meme coin again, a sign that could be positive for the price.
The number of Shiba Inu whale transactions has skyrocketed recently
According to data from the on-chain analytics company saintIt looks like SHIB will be back on the radar of dealers. The indicator of interest here is the “whale transaction count,” which measures the total amount of transactions occurring on the blockchain that involve the movement of at least $1 million Shiba Inu.
In general, the only investors in the market who are able to move such a large number of tokens through single transactions are whales. Thus, when the value of this metric is high, it means that whales are currently making a large number of moves in the market.
Due to the large amount of capital involved in these transfers, a large number of them occurring simultaneously can cause noticeable effects on the price of the meme coin. Therefore, when whales are active in the market, SHIB may show more volatility than usual.
On the other hand, when the number of transactions for whales has a low value (i.e. whales are not showing any significant activity), the market may show more stability.
Now, here’s a chart showing the trend in the number of Shiba Inu whale transactions over the past month or so:
Looks like the metric has registered a large spike in recent days | Source: Santiment on Twitter
As shown in the chart above, the number of Shiba Inu whale transactions has been on the rise lately. This could mean that whales were making a large number of transactions on the blockchain.
At the height of this spike, about 14 separate whales made transfers worth more than $1 million each, the highest number since early April. Interestingly, these transactions occurred just before the end of the week, when the price of the asset fell to a local low.
It is possible that these giant holders made these transfers for buying purposes, as they may have thought that the dip was an ideal point for accumulation.
However, since the whale moves, the Shiba Inu continued to post some upside over the weekend, likely confirming that at least some of these transactions were indeed signs of buying.
In the chart, Santiment also attached data for its “circulation” metric, which tracks the total amount of unique tokens that monitor some on-chain movement.
This indicator also seems to have been up with the number of whale transactions, meaning that the high conversion count wasn’t entirely coming from the same tokens going back and forth over and over, the activity was rather organic.
For most of the past month, the number of whale transactions has remained at relatively low levels, so an indicator that is now rising suggests that whale interest in the asset has finally returned.
This could be a positive sign for the Shiba Inu, as it shows that some life may be returning to the meme coin after it has been stuck in a downtrend for several months now.
chip price
At the time of writing, the Shiba Inu is trading around $0.00000752, down 2% in the past week.
SHIB has risen over the weekend | Source: SHIBUSD on TradingView
Featured image by Ferhat Deniz Fors on Unsplash.com, charts from TradingView.com, Santiment.net