On-chain data indicates that major investors have shown interest in the Shiba Inu recently as they have transferred a large number of SHIB transfers.
The number of large Shiba Inu transactions has been increasing recently
As one analyst at X pointed out: mail Using data from market intelligence platform IntoTheBlock, Shiba Inu whales have been on the move over the past month.
The interesting on-chain indicator here is the “number of large transactions,” which tracks the total number of transfers on any cryptocurrency network with a value exceeding $100,000.
In general, only whale entities are able to make such large transfers, so the number of large transactions can be considered to reflect the activity of these giants.
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When the value of this metric is high, it means that the asset is currently experiencing a large number of big moves. Such a trend may be a sign that whales are actively interested in cryptocurrencies at the moment.
On the other hand, a decline in the indicator may indicate that whales are looking to other markets at the moment where they are not making many transactions for the asset.
Now, here's a chart showing the trend in this indicator for the Shiba Inu over the past month or so:
As the chart above shows, the number of large transactions for Shiba Inu has shown relatively high values at various points in the past month, and also appears to be on the rise over the past few days.
The bottom chart shows data for another metric, “Large Transaction Volume.” This indicator measures the total volume of transactions worth more than $100,000 combined that move on the network daily.
It appears that although the number of transfers occurring on the network at the moment is similar to that seen during the spike earlier in the month, the volume at the time was significantly larger.
This would of course indicate that the whale translocations currently taking place are not on the same scale. However, the scale is not at particularly low levels either.
“Large whale transactions raised around 30 trillion SHIB in May, making the Shiba Inu one of the most traded tokens by whales so far this month,” the analyst notes.
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Now, what does this high whale activity mean for the memecoin price? Since these indicators do not differentiate between buy or sell transactions, it is difficult to say anything about where the currency could be headed based on these indicators alone.
However, one thing that is usually true is that whale activity can lead to higher price volatility. As such, the Shiba Inu may be likely to see sharper price movement if these massive entities continue to make moves.
Ship price
At the time of writing, the price of a Shiba Inu coin is trading around $0.0000241, down over 2.5% over the past seven days.
Featured image by Dall-E, IntoTheBlock.com, chart from TradingView.com
