The volatility of the cryptocurrency market is well-known, and Shiba Inu (SHIB) recently saw a notable change in price. During today’s trading session, the value of the cryptocurrency with a dog motif dropped by 13%, reaching lows of $0.000027.
The overall cryptocurrency market is also declining at the same time as this abrupt decrease, with Bitcoin hitting a low of $65,565 before rising to about $67,700.
As of this writing, SHIB has dropped 14.43% over the previous seven days and 13.77% over the last 24 hours, to $0.00002908.
On-chain data seems to offer some insight into the primary cause of the Shiba Inu price reduction, even if a number of variables may have had a role.
On-chain data sheds light on SHIB transactions and provides hints as to what could have caused the price fluctuation.
Market influence is influenced by large transactions, sometimes known as “whale” activity. According to IntoTheBlock statistics, there has been a general decline in these transactions since March 5 and it has decreased by 5.43% in the past day.
Similarly, IntoTheBlock’s holding time of transacted coins indicator can reveal important information about investor confidence and market mood.
Increased coin trading volume may indicate that investors are more focused on making quick profits. Coins acquired by retail dealers, most often during bull runs, had shorter average holding times.
The amount of coins traded was 2.12 trillion SHIB, indicating speculative trading. On March 13, the average time held of coins exchanged dropped to four weeks, while on March 14, the figure remained at two months.
Speculative traders are renowned for their short-term trading tactics, which frequently follow mood and market movements instead of the asset’s underlying fundamentals. The 13% decline of Shiba Inus is consistent with this pattern. These traders frequently profit from the excitement around well-known cryptocurrencies, which might result in quick purchase and sell orders that could cause unanticipated price swings.
Shiba Inu saw a 300% price breakthrough on March 5, reaching highs of $0.00004575. As of right now, if we base the SHIB price from this date, it varies between $0.000027 and $0.000039.
