Over the past couple of weeks, meme-based cryptocurrencies and the wider cryptocurrency markets have been on an upward trend. However, within the last 24 hours, there has been a significant shift in this trajectory, with most cryptocurrencies experiencing a decline on their daily charts.
During this shift, prominent meme coins like Shiba Inu [SHIB] have witnessed a notable drop. Presently, SHIB is trading at $0.0000237, marking a 7.77% decrease on the daily charts.
Prior to this decline, SHIB had been on a positive trajectory, recording a 23.08% increase on the weekly charts and a 32.12% rise on the monthly charts.
The recent drop, although not an isolated incident, has prompted discussions regarding the potential factors contributing to the decrease in prices. One of the factors that has come under scrutiny is a significant transfer made by a major holder.
Massive Transfer of four trillion SHIB tokens by a Whale
As per Whale Alert’s report, one wallet executed a massive transfer of four trillion SHIB tokens valued at $99 million to another unidentified wallet.
This transaction has sparked speculations within the SHIB community.
Typically, when large holders conduct such transfers, it triggers market apprehension, particularly among individual traders who fear a possible mass sell-off. Such transfers often lead to increased market volatility.
Effects on Price Trends
As anticipated, the meme coin faced a decline over the previous day, influenced by the overall market sentiment shifting from highly optimistic to a more cautious or slightly bearish outlook.
This shift is particularly evident in the uptick of large holder outflow. According to data from IntoTheBlock, SHIB’s major holders have escalated their outflow, reaching a three-month peak of 10.55 trillion tokens.
This indicates that significant holders have been offloading their assets, indicating their intention to maximize profits to mitigate potential losses in case of further price drops.
Furthermore, the total active addresses for Shiba Inu have decreased from 30.1k to 18.96k within the past week, signaling a dwindling interest in the meme coin.
Hence, the drop in address activity reflects a shift in market sentiment, with fewer participants engaging, serving as an early indication of a possible additional decline.
Moreover, Shiba Inu’s supply on exchanges has been consistently increasing and is now at 146.08 trillion tokens. This trend suggests that investors prefer to keep their assets on exchanges for easy liquidation.
In summary, SHIB is witnessing a transient change in market sentiment. While not an isolated event, the meme coin might experience further declines, especially in the short term as it seeks support around $0.000022.
Nonetheless, given the general market optimism, this decline could likely be a necessary market correction preceding another bullish phase. In such a scenario, SHIB could target a recovery to $0.000026.
If this level holds, the meme coin might aim for the $0.00003 resistance level.