Journalist
Posted: November 11, 2024
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Large SHIB transaction volume spiked to its highest in weeks.
The SHIB price has continued to rise since the spike.
Shiba Inu [SHIB] has witnessed an increase in large transactions, with a notable rise in transaction volumes.
This trend has drawn attention to how SHIB’s price might respond to these movements, as high transaction volumes can signal increased market interest or significant trades by whales.
Analyzing this surge in activity alongside SHIB’s recent price performance may offer insights into potential price directions.
Shiba Inu sees large transactions surge
According to the chart from IntoTheBlock, large transactions in Shiba Inu began to surge in late September. It continued intermittently into November, with some noticeable peaks in early October and early November.
Source: IntoTheBlock
Transaction volume reached high levels around the beginning of November, indicating substantial market activity. By the 8th of November, the large transaction volume had hit 6.47 trillion SHIB.
This gradual upward movement suggests that these large transactions contributed to the recent price appreciation.
Price trend after large volume spike
Shiba Inu’s price has been on an upward trajectory since it broke past the $0.000018 level. The recent rally saw the price climbing above $0.00002221, marking an 8.24% increase in the past day.
Analysis showed that the price trend was negative on the 8th of November when its large transaction volume crossed 6 trillion. However, consecutive days after, the price has remained positive.
The 50-day moving average crossed above the 200-day moving average in early October, signaling potential bullish momentum.
Notably, SHIB maintained support above the $0.0000178 level, where it consolidated before making a push past $0.000022.
Source: TradingView
At 72.22 at press time, the RSI indicates that SHIB might be entering the overbought territory, suggesting caution for traders.
However, if the bullish momentum continues, SHIB could test the next resistance levels around $0.000023 and $0.000025. Conversely, a retracement might see support at $0.000018, where prior consolidation occurred.
Potential implications of large transaction volume
The increase in large transactions may indicate a growing interest from high-volume traders. It could also mean whales accumulating Shiba Inu, which could signify confidence in SHIB’s long-term potential.
However, such activity can also lead to heightened volatility, as significant holders may influence price directions.
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As SHIB approaches critical resistance levels, the high transaction volume could fuel either a breakout or a potential correction, depending on whether large holders decide to buy or sell at these levels.
Shiba Inu’s price trend and increased large transactions suggest a mix of bullish potential and caution. Monitoring transaction volumes and RSI levels could further guide SHIB’s short-term outlook.
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