Shiba Inu 97% On-Chain Drop: Is It Concerning?

According to on-chain data, dog-themed cryptocurrency Shiba Inu (SHIB) has experienced a 97% drop in large holder inflows over just three days, sparking concerns about its short-term outlook.

According to IntoTheBlock data, Shiba Inu’s large holder inflows decreased from 3.06 trillion SHIB on June 23 to 84.76 billion SHIB on June 26. This marks a 97% decline, signaling a slowdown in large holder activity.

Large holder inflows indicate the funds entering into whale addresses. An abrupt drop in these flows may indicate that large players are sitting on the sidelines, maybe waiting for better entry prices or clearer market direction.

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This could mean that whales are choosing caution amid recent crypto market volatility. It could reflect a broader risk-off sentiment ahead of macroeconomic triggers or anticipated market moves.

SHIB price drops

Shiba Inu is facing profit-taking after reaching $0.00001192 on June 24 in a two-day rise. At press time, SHIB was trading down 0.75% at $0.00001115 as the broader crypto market traded in the red following the release of higher-than-expected inflation data.

According to a Commerce Department report released on Friday, the annual inflation rate crept further away from the Federal Reserve’s target. The personal consumption expenditures price index, the Fed’s primary inflation reading, increased by a seasonally adjusted 0.1% in the month, bringing the annual inflation rate to 2.3%.

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The Fed’s inflation target is 2%, a level it has not reached since early 2021. Core inflation jumped to 2.7% in May, coming out higher than expected.

The report comes as the Federal Reserve contemplates its next move on interest rates. The central bank is widely expected to keep interest rates unchanged at its late July meeting. However, a few officials recently advocated a cut as long as inflation data shows moderate pressure.