Shiba Inu’s 17% Surge: Why Traders Expect a Drop

This article analyzes Shiba Inu’s （SHIB） recent price surge and explores why traders are predicting a potential decline, highlighting key market indicators and trading volume insights.

Points

• Shiba Inu （SHIB） has shown a notable recovery over the past week.
• Traders predict a potential decline in SHIB’s price despite the recent surge.
• SHIB’s market capitalization and trading volume insights indicate mixed signals.
• Whale transactions and trading volume declines suggest potential price volatility.

Shiba Inu （SHIB） has demonstrated significant recovery over the past week, with a 17% price increase. Currently, SHIB is up by 2% over the last 24 hours, trading at $0.0000194. The token briefly peaked at a one-month high of $0.00002 on July 16 before correcting to $0.0000187 a few hours later.

Shiba Inu’s Market Cap and Trading Volume Insights

Shiba Inu’s market capitalization stands at $11.4 billion, positioning it as the 12th-largest cryptocurrency and the second-largest meme coin in the market. However, its daily trading volume has dropped by 27% over the past 24 hours, now at approximately $500 million. This decline in trading volume, coupled with the surge in whale activity, suggests that SHIB might experience high price volatility due to the influence of large whale movements and potential price manipulation.

Whale Transactions and Potential Price Volatility

Recent data from Santiment reveals a significant increase in whale transactions, with the number of transactions involving at least $100,000 worth of SHIB rising by 121% in the past day—from 81 to 179 transactions. This increase in whale activity indicates that large holders are moving significant amounts of SHIB, which can lead to increased price volatility.

SHIB Price and Funding Rate Analysis

Conclusion

Shiba Inu （SHIB） has shown a notable recovery, but traders are predicting a potential decline due to mixed signals from market capitalization, trading volume, and whale activity

Conclusion （continued）

. The decrease in trading volume and the significant increase in whale transactions suggest potential price volatility in the near term. Traders should remain cautious and closely monitor these indicators to make informed decisions.

FAQ

1. What is Shiba Inu （SHIB）?
   Shiba Inu is a decentralized meme token that has grown in popularity and developed a strong community.

2. What caused the recent surge in SHIB’s price?
   The recent surge was driven by increased investor interest and positive market sentiment, along with substantial whale activity.

3. Why are traders predicting a potential decline in SHIB’s price?
   Traders predict a potential decline due to the decrease in trading volume and the significant increase in whale transactions, which can lead to price manipulation and volatility.

4. What is the current market cap of Shiba Inu （SHIB）?
   Shiba Inu’s market cap is approximately $11.4 billion, making it the 12th-largest cryptocurrency by market cap.

5. How does whale activity affect SHIB’s price?
   Whale activity can lead to significant price volatility, as large transactions by whale accounts can manipulate the price of SHIB.

6. Where can you purchase Shiba Inu （SHIB）?
   Shiba Inu is listed on major exchanges such as Binance, Coinbase, and Kraken.