Bitrabo Editorial
Shiba Inu, the second-largest meme coin, has experienced a period of sideways price movement in the last month, particularly with a notable decline in the past week. Recent on-chain data suggests a potential continuation of this downward trend in the short term due to increasing selling pressure. Notably, major Shiba Inu holders have recently moved trillions of SHIB tokens, hinting at a possible upcoming selloff, with a substantial amount of 4.92 trillion SHIB being transferred to the cryptocurrency exchange Coinbase.
Analysis of On-chain Data Indicates Intense Sell Pressure for SHIB
Several high-market-cap cryptocurrencies have seen price drops in the past 24 hours. For instance, Bitcoin dropped by over 2% yesterday, extending its 7-day losses to more than 5%. This downward movement impacted the prices of major altcoins, with Ethereum also experiencing a decrease of nearly 5%. The cryptocurrency market’s abrupt shift was largely influenced by the latest U.S. Jobs report for May, released by the Labor Department, revealing an increase in the U.S. unemployment rate.
Shiba Inu was not immune to these price declines, with its value dropping by as much as 10% yesterday. Notably, OnchainDataNerd, a significant transaction tracker, highlighted a deposit of 4.29 trillion SHIB tokens into Coinbase by 10 large wallets. At the time of this transfer, the tokens were valued at approximately $97.33 million. This massive movement to Coinbase provides these whales with a convenient platform to sell off their holdings, potentially introducing additional selling pressure to the market.
OnchainDataNerd also pointed out a similarity in transaction patterns among these whale wallets, suggesting potential common control by a single entity. The tokens were acquired at different times, in September 2021 and March 2024, with an average entry price of $0.00001309. With the current SHIB trading price well above $0.000022, a complete selloff of these tokens could yield a profit of $41.22 million for the whale(s).
Shiba Inu Price Recovery Relies on Increased Buyer Activity
Presently, SHIB is trading at $0.00002217, reflecting a 15.10% decline over the past week. The cryptocurrency has retested the $0.00002117 support level twice in the past 24 hours, potentially indicating further decline amidst heightened selling pressure. To see a rebound in Shiba Inu’s price and counter the prevailing selling pressure, a surge in buyer activity is essential to absorb the excessive supply.
Conversely, a recent surge in the Shiba Inu burn rate suggests that the selling pressure could abate soon. This spike in the SHIB burn rate represents a substantial 68,000% increase in the last 24 hours. While short-term price movements may be negative, the long-term outlook appears positive. One analyst predicts that Shiba Inu is poised to surge to $0.00024, marking an impressive 1,100% rise from its current price level.