On-chain data shows that Shiba Inu whales have been displaying interest in the meme coin again, a sign that may be positive for the price.
Shiba Inu Whale Transaction Count Has Spiked Recently
According to data from the on-chain analytics firm Santiment, SHIB looks to be getting back on the radar of the traders. The indicator of interest here is the “whale transaction count,” which measures the total amount of transactions happening on the blockchain that involve the movement of at least $1 million worth of Shiba Inu.
Generally, the only investors in the market who are capable of moving such a large number of tokens with single transactions are the whales. Thus, when the value of this metric is high, it means that the whales are making a large number of moves in the market currently.
Due to the sheer amount of capital involved in these transfers, a large number of them taking place at once can cause noticeable effects on the meme coin’s price. So, when the whales are active in the market, SHIB may show more volatility than usual.
On the other hand, when the whale transaction count has a low value (that is, the whales aren’t showing any significant activity), the market may display more stability.
Now, here is a chart that shows the trend in the Shiba Inu whale transaction count over the past month or so:
Looks like the metric has registered a large spike in recent days | Source: Santiment on Twitter
As displayed in the above graph, the Shiba Inu whale transaction count has observed a surge recently. This would imply that the whales have been making a high number of transactions on the blockchain.
At the peak of this spike, around 14 separate whales made transfers worth more than $1 million each, the highest count since early April. Interestingly, these transactions had come just before the weekend, when the price of the asset had declined to a local low.
It’s possible that these humongous holders had made these transfers for buying purposes, as they may have believed that the dip was an ideal point for accumulation.
Since the whales’ moves, however, Shiba Inu has gone on to register some rise over the weekend, likely confirming that at least some of these transactions were indeed signs of buying.
In the chart, Santiment has also attached the data for the “circulation” metric, which keeps track of the total amount of unique tokens that are observing some movement on the chain.
It would appear that this indicator has also registered a spike along with the whale transaction count, implying that the high transfer count hasn’t purely come from the same tokens moving back and forth over and over, and the activity has been rather organic.
During most of the past month, the whale transaction count had remained at relatively low levels, so the indicator going up now implies that the whale interest in the asset is finally returning.
This could be a positive sign for Shiba Inu, as it shows that some life may be coming back to the meme coin after it has been stuck in a downtrend for many months now.
At the time of writing, Shiba Inu is trading around $0.00000752, down 2% in the last week.
SHIB has risen over the weekend | Source: SHIBUSD on TradingView
Featured image from Ferhat Deniz Fors on Unsplash.com, charts from TradingView.com, Santiment.net