Bitrabo Editorial
Shiba Inu (SHIB) is facing possible selling pressure due to Genesis Trading, a bankrupt crypto company owning a large amount of SHIB tokens. Despite an increase in significant transactions for the meme coin, the situation may lead to selling pressure.
Potential Selling Pressure for Shiba Inu
Reports from the on-chain analytics platform Arkham Intelligence reveal that Genesis Trading holds 21.9 billion Shiba Inu tokens. As the company aims to repay its creditors following restructuring, Shiba Inu could experience substantial selling pressure. Genesis Trading has already begun repayments by moving Bitcoin and Ethereum holdings and is expected to do the same with its SHIB holdings later on.
The decision to sell the 21.9 billion tokens lies with the creditors, who may opt to hold onto them rather than immediately selling. However, if they do choose to sell, it remains to be seen if Shiba Inu whales will assist in absorbing the supply shock. Recent data indicates a surge in large Shiba Inu transactions, potentially helping to offset any pressure from Genesis Trading’s tokens hitting the market.
SHIB’s Recovery Progress
Shiba Inu has shown significant recovery after nearly dropping below the critical support level of $0.00001 amidst a recent market downturn. The meme coin is endeavoring to reclaim the support level at $0.00002, with analyst Armando Pantoja suggesting a positive outlook for SHIB’s future price movement.
Pantoja highlighted a bullish RSI divergence, signaling a potential breakout for Shiba Inu beyond its macro resistance. He expressed confidence in the cryptocurrency’s value, stating that Shiba Inu is set to reach $0.001. Currently, Shiba Inu is trading at approximately $0.00001373, according to data from CoinMarketCap.
