- In recent developments, Shiba Inu, the second-largest meme coin, has experienced a period of sideways price action over the last month, with notable declines in the past week.
- On-chain analytics reveal that this trend may persist in the short term, primarily driven by increasing selling pressure.
- Significantly, largeholders have shifted trillions of SHIB onto cryptocurrency exchanges, suggesting a potential impending selloff.
Discover the latest trends and insights on Shiba Inu’s price movement, large holder activities, and what it means for future market dynamics.
On-chain Insights Highlight Potential Selloff Pressure for SHIB
Multiple large-cap cryptocurrencies have seen price drops in the past 24 hours. Bitcoin, for instance, reduced in value from above $70,000 and lost over 2% yesterday, expanding its weekly losses to over 5%.
This dip triggered a cascading effect on major altcoins, including Ethereum, which also fell by nearly 5%. The abrupt changes were mainly influenced by the recently released U.S. May Jobs report from the Labor Department, indicating an increased unemployment rate.
Shiba Inu was equally affected, with its price dropping by as much as 10% yesterday. OnchainDataNerd, a transaction monitoring service, revealed a 4.29 trillion SHIB token transfer into Coinbase by ten whale wallets, valued at approximately $97.33 million at the time of transfer. The ease of offloading their holdings on Coinbase could introduce fresh selling pressure.
The transaction activities from these whale wallets suggest they may be controlled by a single entity, who accumulated the tokens during September 2021 and March 2024, with an average purchase price of $0.00001309. With SHIB trading well above $0.000022, a complete selloff could yield a $41.22 million profit.
Just 5 hours ago, 10 wallets moved 4.29T $SHIB (~$97.33M) to #Coinbase
The transactions from all 10 wallets show similar patterns:
✅ They accumulated these $SHIB in two periods: Sept 2021 and March 2024
✅ Their average purchase price is $0.00001309, implying a $41.22M profit if sold at current prices.— The Data Nerd (@OnchainDataNerd) June 11, 2024
Shiba Inu Price Requires Buyers for Recovery
As of this writing, SHIB is trading at $0.00002217, marking a 15.10% decline over the past week. The cryptocurrency has tested support at $0.00002117 twice in the last 24 hours and faces further declines amid ongoing selling pressure. For SHIB to recover, substantial buyer interest is needed to absorb the oversupply.
In contrast, a recent spike in the Shiba Inu burn rate indicates potential relief from selling pressure soon. This surge represents a 68,000% increase in the past 24 hours. Although short-term price action remains bearish, the long-term outlook, according to an analyst, foresees SHIB rising to $0.00024, representing a remarkable 1,100% increase from current levels.
Conclusion
In summary, Shiba Inu faces significant short-term challenges due to massive sell-offs by prominent holders. However, the unexpected surge in the SHIB burn rate and analysts’ predictions of long-term price appreciation provide a silver lining. Traders and investors should watch these dynamics closely, as the balance between selling pressure and buyer interest will shape the future trajectory of SHIB.
