Shiba Inu (SHIB) is facing potential trouble as a noticeable decline in large transaction volume has been observed. According to on-chain data, the volume of whales’ SHIB transactions has plummeted to 365.69 billion SHIB in the past 24 hours, falling below the 500 billion SHIB mark. This significant decrease could lead to liquidity problems and even a price reversal in the near future.

Drop in Transaction Volume And Number Of Large Transactions

The number of large transactions has also declined sharply, reaching a seven-day low of only 15 transactions. This is a stark contrast to the seven-day high of 75 transactions recorded on July 22, 2024. 

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Consequently, the reduction in whale activity negatively impacts both price and liquidity support for SHIB, as evidenced by the declining transaction volume and number of large transactions.

_{Source: IntoTheBlock}

Technical Analysis: Descending Wedge Pattern And Moving Averages

SHIB’s price action has formed a descending wedge pattern, which often indicates potential volatility and, in many cases, a bullish breakout if the price breaks above the upper trendline. However, SHIB’s current state presents a conflicting picture. The price has struggled to rise above key moving averages, which act as barriers. 

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Technical indicators show SHIB’s risky position, needing to cross both the 50-day and 100-day EMAs for a bullish reversal. Currently, the price trades near the lower bound of the falling wedge, indicating that if bearish sentiment continues, the downtrend may persist.

The decline in whale transactions and large volumes suggests potential liquidity issues and a possible price reversal for SHIB. While the descending wedge pattern could indicate a bullish breakout, the price has yet to overcome significant moving averages. 

Thus, SHIB’s future is uncertain, with indicators pointing to both recovery and continued decline based on market sentiment and trading activity.