Shiba Inu, the second largest meme coin, has been undergoing a sideways price movement in the past 30 days, with an emphasised decline in the past seven days. On-chain data indicates this decline might continue in the short term as selling pressure continues to increase. Some of the major holders of Shiba Inu have lately moved trillions of SHIB in acts that may be indicative of an impending selloff, with 4.92 trillion SHIB being transferred onto the cryptocurrency exchange Coinbase.
On-chain Data Suggests Massive Sell Pressure For SHIB
Most large market-cap cryptocurrencies have witnessed price declines in the past 24 hours. Bitcoin, for instance, fell from above $70,000 and lost over 2% yesterday to extend its 7-day losses to over 5%.
This, in turn, led to a corresponding decrease in the price of major altcoins, with Ethereum also plunging by almost 5%. This sudden move in the cryptocurrency market was largely influenced by the recently released U.S. May month Jobs report by the Labor Department yesterday which revealed a rising unemployment rate in the U.S.
Shiba Inu wasn’t left out of these price declines, as price action shows the crypto’s price dropping as high as 10% yesterday. In a recent social media post by OnchainDataNerd, the large transaction monitor noted a deposit of 4.29 trillion SHIB tokens into Coinbase by 10 whale wallets. At the time of transfer, these tokens were worth around $97.33 million. The huge transfer to Coinbase means the whales now have a convenient way to offload their holdings, which could introduce new selling pressure to the market.
OnchainDataNerd also pointed out that the transaction pattern from these whale wallets might indicate that they are under the same entity’s control. The tokens were accumulated in two different periods in September 2021 and March 2024, with an average entry price of $0.00001309. With SHIB now trading well above $0.000022, a total selloff of the tokens would generate a $41.22 million profit for the whale(s).
5 hour ago, 10 wallets deposited 4.29T $SHIB (~$97.33M) to #Coinbase
10 above wallets have the same movements:✅Those $SHIB were accumulated in 2 different times: Sept 2021 and March 2024✅The avg entry is $0.00001309 ???? the profit will be $41.22M if sold all at current price pic.twitter.com/CYsMhYkgfc
— The Data Nerd (@OnchainDataNerd) June 11, 2024
Shiba Inu Price Needs Buyers To Rebound
At the time of writing, SHIB is trading at $0.00002217 and is down by 15.10% in the past seven days. The cryptocurrency has tested support at $0.00002117 two times in the past 24 hours and is at risk of a further decline in the midst of selling pressure. For the Shiba Inu price to rebound in the face of massive selling pressure, there needs to be enough buyers to absorb the excess supply.
On the other hand, a recent explosion in the Shiba Inu burn rate suggests the selling pressure could end very soon. This increase in the SHIB burn rate represents a 68,000% change in the past 24 hours. While the short-term price action may be negative, the long-term outlook still looks positive. According to an analyst, Shiba Inu is set to skyrocket to $0.00024, marking a 1,100% increase from the current price level.
Featured image created with Dall.E, chart from Tradingview.com
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