On-chain data indicates a downward trend for Shiba Inu, with a significant decrease in large transfers, raising concerns about its recovery potential. The number of large transactions has sharply declined over the past week, with a notable drop from 285 transactions on June 18 to 117 in the last 24 hours. This suggests a reduction in activity or selling of SHIB holdings among major market players.

The volume of large transactions in USD has also seen a significant drop, from a seven-day high of $8.33 trillion SHIB on June 13 to $2.93 trillion in the last 24 hours. This lack of strong buying pressure from major investors is reflected in the downward trend of transaction volumes, indicating a weakness in SHIB's price.

Analysis of the SHIB/USDT chart reveals a market downtrend, with SHIB trading below its key moving averages. Despite a minor rebound, the price has fallen significantly below previous support levels, with a recent drop below $0.00002 indicating an oversold area with an RSI of 36. While this may attract some bargain hunters, the overall sentiment remains negative.

The decrease in large transaction volume and negative sentiment among whales suggest limited recovery potential for Shiba Inu. Without substantial buying activity from major investors, SHIB may struggle to return to its previous highs. A significant rebound would require a change in sentiment and an increase in large transaction volumes, indicating renewed interest from key market participants.

In conclusion, Shiba Inu's downward trend, lack of strong buying pressure, and negative sentiment among whales suggest a challenging road to recovery. While some bargain hunters may be attracted to the oversold area, a significant rebound requires a shift in sentiment and increased interest from major investors.