Recent blockchain data indicates that Shiba Inu (SHIB) whales may have played a role in its recent price decline, raising concerns about its status as a top-tier cryptocurrency. Despite this downturn, one trader remains optimistic about Shiba Inu's future potential.

Shiba Inu Sees Surge in Large Transactions Amid Market Decline

According to insights from IntoTheBlock, there has been a significant surge of over 400% in large transactions involving Shiba Inu in the past 24 hours. These transactions, valued at $100,000 or more, are noteworthy given the recent market downturn.

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Typically, such whale activity is viewed positively, suggesting potential price increases if whales are accumulating tokens rather than selling them. However, in this instance, the increase in large transactions amid market decline indicates that whales may be either adding to their holdings or cutting losses by selling off tokens.

Further data from IntoTheBlock reveals that the latter scenario is likely unfolding, with these whales reducing their Shiba Inu holdings. The Large Holders Netflow metric shows a decrease in the tokens held by these whales, with approximately 392.7 billion tokens moved from wallets representing 0.1% of Shiba Inu’s supply.

These tokens are believed to have been transferred to exchanges as whales attempt to mitigate potential losses amid concerns that Shiba Inu's value could further decrease. Consequently, these actions have contributed to additional price declines, pushing the meme coin below the critical resistance level of $0.00002.

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Shiba Inu’s recent drop has also resulted in a significant reduction in its market capitalization, causing it to slip in the crypto rankings to twelfth place by market cap, below Tron.

SHIB's Long-Term Prospects

Crypto analyst Vapor has asserted that despite recent challenges, Shiba Inu remains a significant player poised for success in the upcoming altcoin season. Vapor predicts that Shiba Inu's blue-chip status will distinguish it in the market cycle and propel it during the forthcoming meme supercycle.

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Vapor emphasized that blue-chip meme coins like Shiba Inu offer distinct advantages, making them appealing candidates to hold during an altcoin season. He anticipates that Shiba Inu will attract significant attention from retail investors, akin to its popularity in 2021, particularly because it is listed on top-tier centralized exchanges.

According to Vapor, the mass retail market will likely favor meme coins such as Shiba Inu, which have established themselves on leading exchanges, positioning them favorably for future market trends.