Big Purchase Made by a Shiba Inu Whale: Will It Aid in Reversing SHIB?

Shiba Inu’s Recent Struggles in a Bullish Bitcoin Market

Data reveals a significant move within the Shiba Inu ecosystem, as a whale recently withdrew a substantial stack of SHIB from the Binance exchange. This unexpected development has sparked speculation about its potential impact on the memecoin’s price, especially considering the recent struggles Shiba Inu has faced amid a bullish market for Bitcoin.

Shiba Inu’s Recent Performance

While Bitcoin investors bask in the success of the digital gold breaching the $45,000 barrier in 2024, altcoin holders, including Shiba Inu enthusiasts, find themselves facing a challenging market. Shiba Inu, like many other altcoins, has witnessed a decline in the new year. The graph below illustrates the recent performance of this memecoin:

  • Shiba Inu plunged alongside the broader market a few days ago.
  • Despite Bitcoin’s recovery, SHIB continues to slide.
  • In the past day, SHIB reached as low as $0.00000850 before rebounding to $0.00000917.
  • The memecoin has experienced a notable decrease of over 12% in the past week.

Shiba Inu’s Market Cap Dilemma

Shiba Inu currently holds the 17th position in terms of market capitalization within the cryptocurrency sector. However, its market cap is only slightly higher than that of the stablecoin Dai. There is a looming risk of SHIB slipping further down to the 18th spot if it witnesses additional drops. The table below illustrates Shiba Inu’s current standing in the broader market:

RankCryptocurrencyMarket Cap (USD)
17Shiba Inu[Market Cap]
18Dai[Market Cap]

Amidst the challenges, a glimmer of hope for SHIB investors emerges, possibly signaling a potential turnaround.

The Optimistic Sign: Large SHIB Withdrawal from Binance

Smart-money tracker Lookonchain has identified a noteworthy event: a substantial withdrawal of Shiba Inu from the Binance cryptocurrency exchange in the past day. A total of 546.34 billion SHIB, equivalent to approximately $5 million at the current asset price, has left the platform in two transactions. The details of these transactions are as follows:

  1. Transaction Details: [Transaction 1 details]
  2. Transaction Details: [Transaction 2 details]

What Does This Mean for Shiba Inu?

The outflows from Binance seem to be directed toward a newly created address. Given the scale of the holdings, it is likely that a whale entity is involved. This could either be a new whale purchasing the cryptocurrency and withdrawing it into self-custody for long-term holding or an existing investor reshuffling their coin holdings. Regardless, these withdrawals present a positive development for Shiba Inu:

  • The entity behind the withdrawals is currently not interested in selling the coins on a central platform.
  • This move suggests potential confidence in the future value and stability of Shiba Inu.

In conclusion, while Shiba Inu faces challenges in the broader market, the recent whale activity brings a ray of hope for a possible reversal. The coming days will reveal whether this large purchase will play a pivotal role in turning the tides for SHIB investors.

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