The cryptocurrency market is known for its volatility and Shiba Inu (SHIB) recently experienced significant price movement. The dog-themed cryptocurrency saw a 13% drop in value in today’s trading session, falling to lows of $0.000027.
The cryptocurrency market is known for its volatility and Shiba Inu (SHIB) recently experienced significant price movement. The dog-themed cryptocurrency saw a 13% drop in value in today’s trading session, falling to lows of $0.000027.
This sudden drop coincides with a drop in the overall 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 14.43% in the last seven days.
While several factors may have contributed to the SHIB price drop, on-chain data appears to provide insight into the key reason for the Shiba Inu price drop.
The on-chain data provides a deeper look into SHIB transactions, offering clues as to what could have triggered the price movement.
Large transactions, often called “whale” activities, influence the market. A general drop in this type of transactions has been observed since March 5 and fell 5.43% in the last 24 hours, due to In the block data.
Likewise, the holding time of the traded currencies indicator of In the block can provide valuable information on investor confidence and market sentiment.
If coins trade more frequently, it could imply that investors are more interested in short-term gains. Coins purchased during bull runs, presumably by retail traders, had shorter average holding periods.
The average holding time of traded coins fell to four weeks on March 13, while the figure on March 14 was two months, and the volume of traded coins was 2.12 trillion SHIB, indicating a speculative trade.
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 seems to align with that trend. These traders often take advantage of the hype surrounding popular cryptocurrencies, generating rapid buy and sell orders that can trigger unexpected price movements.
Shiba Inu rose to highs of $0.00004575 on March 5 after a 300% price breakout. Currently, SHIB price fluctuates in a range of $0.000027 and $0.000039, if taken from this date.
