Alarming behaviour has been seen by IntoTheBlock recently in relation to the on-chain data of the well-known cryptocurrency Shiba Inu (SHIB), causing massive withdrawals from the wallets of prominent investors. It appears that after previously being positive on the token, they are now pessimistic.
One trillion SHIB have shockingly left the wallets of major investors since Monday, outpacing the influx of 745 billion tokens. As a result, the netflow of Shiba Inu whales’ wallets over the last week fell to a depressing -377.35 billion SHIB, which is a substantial 50% decrease from the index value only the day before.
Possible reasons
There are two major factors that stand out when analysing the causes of this behaviour of big SHIB holders: basic and technological.
The acceptance of Shiba Inu and the ventures created around the token are at the centre of the first one. Among these initiatives, Shibarium is the star. The Layer 2 solution is now operating in a test network, but the administrators have been quiet, sharing little information beyond cryptic tweets. Major holders may have reduced their holdings of the token because to the ambiguity surrounding the release of Shibarium on the main network.
The second element relates to the cost of the Shiba Inu token, which last week was unable to surpass the crucial resistance level of $0.0000084 per SHIB. Despite an amazing start, the token has now dropped by 12% and is currently trading in a volatile environment. It is conceivable that huge whales, who operate with sizable funds and tend to exercise prudence, were discouraged by this uncertainty over the token’s future price direction.
Will Shiba Inu be able to get over these obstacles and pick up steam again?
