Journalist
Published:
- Shiba Inu has a bullish bias on the price charts on the daily time frame.
- Increased whale activity at the start of the week is not a concern for the bulls in the short term.
Shiba Inu (SHIB) saw an increase in large transactions on Monday, December 16. The previous week, when the meme coin corrected from the $0.000032 region, a wave of whale activity was spotted.
Could this rise be a warning that Shiba Inu prices were likely to fall?
Review of Shiba Inu Whale Activity Peaks in December
Source: In the block
On Monday, December 16, Shiba Inu saw an increase in large transactions of more than 250% compared to the previous day. The total SHIB trading volume that day was $175 million, or 6.42 trillion SHIB.
Generally, increased whale activity is a sign of impending selling pressure or a surge in buying activity. Given that the price of the meme coin has fallen by 8% since Monday’s daily open, we can assume that it was the former.
On December 10, there were $510 million in large transactions, classified as on-chain transactions worth more than $100,000. At that time, the Shiba Inu had slipped almost 25% in one day and was testing the local bottom at $0.000024.
Source: Santiment
The dormant diffusion chart reflects the previous week’s movement, but it saw a much smaller peak on the 16th. This corresponds well with the overall trading volume, indicating that small holders also joined the whales fleeing the market due to short-term volatility.
The average age invested in dollars has been trending downward since November, while Shiba Inu was trending upward. This is nothing extraordinary, but it does not mean that the local bottom has been reached.
Instead, if December 2021 repeats itself, Shiba Inu could enter a prolonged downtrend.
Market structure remained bullish
Source: SHIB/USDT on TradingView
While the MDIA metric depicted vague threats to the bulls, the price action chart remained firmly bullish. The Awesome Oscillator showed upside momentum, although last week’s losses caused the bullish outlook to weaken over the coming days.
Realistic or not, here is the market capitalization of SHIB in terms of BTC
The $0.000024 region, which was tested just over a week ago, will likely be tested again as a demand zone.
A daily session closing below $0.0000235 would be a sign of further losses and the next target would then be $0.0000205.
