Shiba Inu has fallen nearly 20% from the two-month high it reached in a sudden 35% jump, slipping to roughly $0.000004631. Santiment counted 52 whale transactions in a single day during the rally, the most since March 31, and read that activity as larger holders taking profits. Rising exchange balances and stalled activity on Shibarium point to further pressure in the near term.
Shiba Inu's rebound lasted a weekend. The token jumped 35% to a two-month high of around $0.00000582, according to CoinGecko. Bulls then lost momentum, and SHIB now trades at roughly $0.000004631, a nearly 20% decline from that local high.
Two factors may have acted as catalysts for the revival: a whale that resumed accumulating after more than half a year of inactivity, and a resurgence of the token's burning mechanism.
Whale transactions hit their highest count since March 31
The analytics platform Santiment counted 52 whale transactions in a single day amid the rally, the most since March 31. It read that activity as larger holders taking profits: "Activity strongly suggests larger holders took profits into strength".
Retail investors, by Santiment's account, joined the party too late and chased the excitement near the top, handing whales the liquidity they needed to reduce their exposure.
Santiment also set out its approach to meme coins. The platform said the smart move is to cash out when retail FOMO spikes and re-enter once the crowd turns hostile and calls the token a scam. X user Crypto King opened a short position on July 26, citing the double-digit price increase, the whales' accumulation, the exploding burn rate and rising volume.
Exchange balances climb to a two-week high
SHIB has lost its traction while the broader cryptocurrency market flashed in red again, which could lead to a further downfall for the meme coin in the near term. Exchange balances are a second warning: CryptoQuant's data shows the amount of tokens stored on exchanges rising constantly over the past several days to a two-week high of around 86.7 trillion units.
Such a development suggests many investors have abandoned self-custody and flocked to centralized platforms, increasing immediate selling pressure.
Shibarium activity has stalled
Activity on Shibarium has stalled as well. The layer-2 scaling solution, designed to foster the advancement of Shiba Inu's ecosystem, was once considered among the primary catalysts that could trigger a price increase for the meme coin. But after an exploit in September last year, the protocol saw a sharp decline in usage, dropping to merely hundreds or thousands of daily transactions.
Source: CryptoPotato
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