What's Behind SHIB's Sudden Dip? On-chain Data Reveals Key Reasons

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The cryptocurrency market is renowned for its volatility, and Shiba Inu (SHIB) recently experienced a sharp 13% price drop, falling to lows of $0.000027. This decline mirrors broader market trends, with Bitcoin briefly dipping to $65,565 before recovering to $67,700.

Market Performance Overview

Key Factors Behind SHIB's Drop

1. Whale Activity Decline

On-chain data reveals a 5.43% drop in large transactions ("whale activity") over 24 hours, with a sustained decline since March 5. Reduced whale participation often signals weakened institutional interest or profit-taking, contributing to price instability.

2. Speculative Trading Patterns

IntoTheBlock’s data highlights speculative behavior:

👉 Explore real-time SHIB market trends

3. Retail Investor Sentiment

Coins purchased during bull runs (often by retail traders) showed shorter holding periods. This pattern aligns with SHIB's volatility, as hype-driven trading amplifies price swings.

Current Price Range

SHIB now fluctuates between $0.000027** (support) and **$0.000039 (resistance), reflecting post-breakout consolidation.

FAQs

❓ Why did SHIB drop 13%?

The dip reflects reduced whale activity, speculative trading, and broader market corrections.

❓ How does holding time affect SHIB’s price?

Shorter holding periods (e.g., 4 weeks) suggest speculative trading, increasing volatility.

❓ What’s SHIB’s support level?

Current support sits at $0.000027**, with resistance at **$0.000039.

👉 Track SHIB’s latest on-chain metrics

Key Takeaways