On-chain data shows the activity of Shiba Inu whales has been high recently. Here’s what that means for the meme coin price.
Shiba Inu Whale Transaction Count Recently Requested
According to data from an on-chain analytics company Holy, not only SHIB, but Cardano (ADA) and Hex (HEX) have also seen high whale activity in the last few days. The relevant indicator here is the “number of whale transactions,” which measures the total number of transfers made in the network that involve the movement of coins of at least $100,000.
While the value of this metric is high for any digital currency, it means that whales from these coins are making a lot of transfers today. The trend shows that these humongous holders have an active interest in trading the current asset.
Because the transactions involved in whales are generally quite large in size, quite a few can cause visible ripples in the market. Because of this, a high number of whale transactions can signal that volatility may be in store for the coin.
Now, here is a chart showing the trends in this indicator for Shiba Inu, Cardano, and Hex over the past few months:
The value of the metric seems to have been high for all these assets in recent days | Source: Santiment on Twitter
As shown in the chart above, the number of Shiba Inu whale transactions increased recently and reached the highest value since January 17. This means that SHIB whales have made many transfers in the last few days.
Cardano and Hex have also registered high values of the indicator, and in their case, the surge has led to the highest values since May 11 and November 6. This shows that whales are also quite active in trading these altcoins.
As mentioned earlier, markets with higher activity from these humongous holders usually experience significant volatility in the future. Given that SHIB, ADA, and HEX are all currently seeing such elevations, there is likely to be a huge price break.
However, it is difficult to say which direction the volatility can take the price of these cryptocurrencies. While elevated activity can be a sign of buying from whales (naturally a bullish signal), the same trend is also seen when these investors are selling instead (which can be bearish for the price).
Since the 17th of last month, when Shiba Inu previously saw high activity from this cohort, the meme coin has continued to see an overall upward climb that still continues. This may indicate that the pope is actively buying these assets.
If the current investors also show the same trend, then SHIB may feel the positive impact this time. However, it remains to be seen whether the whales are actually buying or selling now.
SHIB price
At the time of writing, Shiba Inu is trading around $0.00001460, up 26% in the past week.
Looks like SHIB has surged | Source: SHIBUSD on TradingView
Featured images from Thomas Lipke on Unsplash.com, charts from TradingView.com, Santiment.net