Canine-themed cryptocurrency Shiba Inu is sustaining a strong transaction volume as the market continues its sell-off.
The total crypto market capitalization has slipped nearly 1% to $1.07 trillion as the market enters its second day of selling. Shiba Inu, like the majority of crypto assets, is sustaining losses as profit-taking ensues.
Shiba Inu has lost the $0.000007 level as a result of the bears’ onslaught, reaching lows of $0.00000673 on Oct. 8. At the time of writing, SHIB was down 0.88% in the last 24 hours to $0.00000688.
Despite the price drop seen for SHIB, on-chain data portends an interesting indication for its network.
According to IntoTheBlock data, Shiba Inu has seen 4.48 trillion SHIB in transaction volume over the last 24 hours. The Transactions Volume indicator estimates the aggregate volume of transactions recorded on-chain in crypto terms.
Transaction volume can also indicate both trading and nonspeculative activity. Like trading activity on exchanges, transaction volume can be helpful for spotting reversals and breakouts.
Shiba Inu saw a massive transaction volume spike ahead of the Oct. 8 sell-off as IntoTheBlock data revealed a transaction volume surge from 1.76 trillion SHIB on Oct. 7 to a staggering 4.69 trillion SHIB on Oct. 8. This increase might signal both panic from holders selling as well as large investors buying amid the uncertainty.
Shiba Inu sustained this trend, seeing a strong transaction volume of 4.48 trillion SHIB on Oct. 9. While uncertainty remains on the market, where SHIB will trend next remains an open question.
In most cases, strong transaction volume may indicate a price trend reversal. If this is the case, Shiba Inu may be experiencing bottoming or capitulation. However, bulls may need to consolidate to gain strength before making another move.
