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On-chain data shows that Shiba Inu has been having a difficult time lately. As per the most recent data, SHIB has witnessed a meager 1 trillion SHIB transactions over the past 24 hours, which is a significant decline from the seven-day peak of 4 trillion SHIB on Oct. 9.

This steep drop suggests that major holders are leaving the asset as large investors or whales have begun to reduce their holdings. A major problem is highlighted by this decline in transaction volume: Institutional and large-scale investors are not supporting purchases. The market's general attitude and possible doubts about SHIB's capacity to maintain price momentum particularly in light of its inability to hold onto important support levels may be the reason behind the whales' withdrawal from the stock.

A pivotal resistance level at $0.000017, which has been preventing further upward movement, is difficult for SHIB to overcome on the price chart. A significant amount of capital is not entering the market as evidenced by the declining trend of large transactions, which makes it challenging for SHIB to find any significant bullish momentum.

Even though the data points to a pessimistic outlook, SHIB still has some hope. Long-term support is usually provided by the 200-day moving average, which the price is still above. There is a chance for a recovery if SHIB can turn around and gain traction above this level. For the time being though, the outlook is still cautious because big transactions are decreasing and the whale exodus is still ongoing.

A substantial increase in purchasing pressure is necessary for SHIB to alter the perception. Without this, there may be no way for SHIB to make any significant progress in the near future due to the continuous whale exodus and weak market performance.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.