- Shiba Inu has a bullish bias on the price charts on the daily timeframe.
- The increased whale activity earlier this week was not a concern for the bulls in the short-term.
Shiba Inu [SHIB] witnessed an increase in large transactions on Monday, the 16th of December. The previous week, when the meme coin corrected from the $0.000032 region, a flurry of whale activity was spotted.
Could this uptick be a warning that Shiba Inu prices were likely to dive lower?
Examining the Shiba Inu whale activity spikes in December
Source: IntoTheBlock
On Monday, the 16th of December, Shiba Inu saw an increase in large transactions of more than 250% from the previous day. The total SHIB transaction volume on the day was $175 million, or 6.42 trillion SHIB.
Generally, increased whale activity is a sign of imminent selling pressure or a spurt in buying activity. Since the price of the meme coin is down by 8% since Monday’s daily open, we can assume that it was the former.
On the 10th of December, there was $510 million in large transactions, classified as on-chain transactions worth more than $100k. At that time, Shiba Inu had slid nearly 25% in a day and was testing the local bottom at $0.000024.
Source: Santiment
The dormant circulation chart reflected the move from the previous week, but it saw a much smaller spike on the 16th. This corresponded well with the overall transaction volume, indicating that smaller holders also joined whales fleeing the market due to the short-term volatility.
The mean dollar invested age has been trending downward since November, while Shiba Inu was pushing its way upward. This was not out of the ordinary, but it does not signal that the local bottom is in.
Instead, if December 2021 repeats itself, Shiba Inu might enter an extended downtrend.
The market structure remained bullish
Source: SHIB/USDT on TradingView
While the MDIA metric outlined some vague threats to the bulls, the price action chart remained firmly bullish. The Awesome Oscillator showed upward momentum, although the past week’s losses have resulted in a weakened bullish outlook over the next few days.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
The $0.000024 region, which had been tested just over a week ago, was likely to be retested as a demand zone.
A daily session close below $0.0000235 would be a signal of further losses and the next target then would be $0.0000205.
