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Cryptocurrency News Articles
Shiba Inu ($SHIB) Transaction Volume Drops Sharply, Raising Concerns Among Investors
Oct 14, 2024 at 09:04 am
Shiba Inu (CRYPTO: SHIB) encountered difficulties in maintaining its momentum within the crypto market on Friday.
Over the last 24 hours, only 1.2 trillion SHIB tokens were traded — a stark contrast to the peak of 4 trillion SHIB observed just a week ago. This sharp decline in transaction volume raised concerns among investors, highlighting the shifting sentiment towards the meme coin.
What Happened: The drop in transaction volume indicated that major holders, colloquially termed “whales,” were reducing their SHIB holdings.
These large investors played a pivotal role in maintaining the price stability of an asset and their withdrawal suggested a loss of confidence in the coin’s prospects.
The decrease in institutional participation further highlighted a cautious mood across the market.
SHIB also encountered difficulties in terms of support and resistance levels. The token failed to hold key support levels and faced a barrier at $0.000017, preventing it from rising further.
Without overcoming this resistance, SHIB faced significant selling pressure, leading to uncertainty about its future trajectory.
Whale Behavior, Market SentimentThe selling activity from whales signaled concern, which had the potential to spread fear throughout the market and discourage new buyers from entering.
This highlighted the importance of market psychology, where fear of missing out (FOMO) drove prices up, while fear of losses triggered more selling.
With doubts mounting over SHIB’s ability to recover, more investors were cashing out, adding downward pressure on the price.
Hope From Long-Term SupportDespite the current challenges, there was still some hope.
The 200-day moving average, a critical technical indicator, had historically provided strong support for SHIB, preventing further declines.
If SHIB managed to stay above this level and attract new buyers, it could stage a recovery.
However, market conditions and whale behavior would play a crucial role in determining whether this rebound materialized.
What’s Next for SHIB?For Shiba Inu to reverse the current trend and regain investor confidence, it would need a significant boost in buying activity.
Without this support, the token may struggle to make meaningful gains.
The continued exit of large investors and weak market sentiment created a challenging outlook, and the coin’s ability to recover remained uncertain.
Shiba Inu price action on Friday was dull compared to last week, when the token witnessed massive buying activity.
The recent transfer of 1.2 trillion SHIB in a single day highlighted the challenges Shiba Inu faced.
This marked a significant drop from 4 trillion SHIB last week. Investors remained cautious, with whales reducing their exposure to SHIB.
The failure to hold key support levels and break through critical resistance added to the uncertainty.
However, if SHIB manages to stay above the 200-day moving average and attract fresh buying interest, the token might still have a chance to recover.
Disclaimer:info@kdj.com
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- ICP Makes the Internet into a World Computer
- Oct 14, 2024 at 04:20 pm
- Dominic Williams, Founder and Chief Scientist of DFINITY, delivered a compelling keynote address at the Chain Fusion Hub @ Token2049 Singapore titled “ICP Makes the Internet into a World Computer”, presenting his vision of a revolutionary blockchain technology that transcends the limitations of traditional blockchains and offers a paradigm shift in how we build and secure applications. Coin Edition is pleased to present the following soundbites from the DFINITY founder.