Shiba Inu (SHIB) is experiencing a notable decline in large transaction volume, with on-chain data revealing a significant drop below 500 billion SHIB in the last day. This reduction in transaction volume could lead to liquidity issues and potential price reversals in the near future.

The decrease in whale activity is concerning for SHIB's price and liquidity support, as it reflects a decrease in both transaction volume and the number of large transactions. According to IntoTheBlock's analysis, the number of large transactions has decreased to a seven-day low of 15, compared to a seven-day high of 75 transactions on July 22, 2024.

SHIB's price action has formed a descending wedge pattern, which often indicates potential volatility and a bullish breakout if the price breaks above the upper trendline. However, the current state of SHIB presents a mixed outlook, with the price struggling to rise above key moving averages that act as resistance levels.

Technical indicators highlight SHIB's precarious position, suggesting that a bullish reversal is contingent upon surpassing both the 50-day and 100-day Exponential Moving Averages (EMA). Currently, the price is trading near the lower bound of the falling wedge, indicating that if the bearish sentiment persists, the downtrend may continue.

The decline in large transaction volume and whale activity raises concerns about SHIB's liquidity and price support. If the current trend persists, SHIB may face significant challenges in regaining momentum and achieving a bullish reversal.