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As of late, large transactions involving the SHIB token have surged by a whopping 400%. This unprecedented move has led to speculation that crypto "whales" might be waking up, making their presence felt on the market.
Just yesterday, Shiba Inu experienced a remarkable breakthrough by successfully crossing the 21 Exponential Moving Average (EMA). However, the jubilation was short-lived. Today, the token has retraced its steps, returning to its position below the 21 EMA. Such volatile price action in such a short span naturally raises questions about what is influencing SHIB's trajectory.
One potential reason for this sudden price fluctuation could be the recent baseless rumor related to Bitcoin's spot ETF approval. Much like the ripple effect it had on other altcoins, this false whisper about BTC also influenced SHIB's price dynamics. With the initial euphoria pushing BTC's price higher, SHIB and other tokens also saw a rise. However, as the truth behind the rumor unraveled, the tide turned, leading to a pullback in prices across the board, including SHIB.
Yuri MolchanAnother vital aspect to consider is the remarkable increase in SHIB's large transactions. With a 400% rise, one cannot help but speculate that this might have been an aftereffect of yesterday's market surge. This drastic uptick in activity points toward the participation of whales and other significant entities. The rationale behind their increased involvement could be manifold, from attempting to secure considerable profits, to adjusting their portfolios or establishing specific market positions.
The entrance or exit of such heavyweight participants can significantly sway market sentiment, as they hold the power to influence supply and demand dynamics. Their recent activity surrounding the SHIB token might explain its volatile price action in the last 48 hours.
Godfrey Benjamin
Dan Burgin
Alex Dovbnya