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The cryptocurrency market is known for its volatility, and Shiba Inu (SHIB) recently experienced a significant price move. The dog-themed cryptocurrency saw a 13% drop in value in today's trading session, falling to lows of $0.000027.
This sudden decline coincides with a drop in the general crypto market, with Bitcoin falling as low as $65,565 before recovering to around $67,700.
At the time of writing, SHIB was down 13.77% in the last 24 hours to $0.00002908 and down 14.43% in the last seven days.
While several factors may have contributed to the SHIB price decline, on-chain data appears to provide an inkling into the key reason for the Shiba Inu price drop.
A deeper look into SHIB transactions is provided by on-chain data, which offers clues as to what might have triggered the price movement.
Large transactions, often referred to as "whale" activities, play a role in influencing the market. A general drop in such transactions has been observed since March 5 and was down 5.43% in the last 24 hours, per IntoTheBlock data.
Likewise, the holding time of transacted coins indicator from IntoTheBlock can provide valuable insights into investor confidence and the sentiment of the market.
If coins are traded more frequently, it could imply that investors are more interested in short-term gains. Coins purchased during bull runs, presumably by retail dealers, had shorter average holding periods.
The average time held of coins transacted fell to four weeks on March 13, while the figure for March 14 stood at two months, and the volume of the coins transacted was 2.12 trillion SHIB, indicating speculative trading.
Speculative traders are known for their short-term trading strategies, often based on market trends and sentiment rather than the underlying fundamentals of the asset. In the case of Shiba Inu, the 13% drop appears to align with such a trend. These traders often take advantage of the hype surrounding popular cryptocurrencies, leading to rapid buy and sell orders that might trigger unexpected price movements.
Shiba Inu rose to highs of $0.00004575 on March 5 after a 300% price breakout. Currently, the SHIB price fluctuates in a range of $0.000027 and $0.000039, if taken from this date.
Yuri Molchan
Arman Shirinyan
Alex Dovbnya
