The crypto market is unsettled lately, with Shiba Inu facing intense selloff pressure from whales as traders take profit
Shiba Inu (SHIB) is experiencing huge price concerns. A SHIB whale has made a huge splash in the ecosystem with a massive liquidation move. The development saw the whale dump 250 billion SHIB memecoins valued at $6.05 million in what has been identified as a profit-taking move.
Historical Selloff Trend and Current Market Impact
Interestingly, the whale entered the SHIB market with a mere $3,800 investment a little over four years ago.
The whale acquired a staggering 15.28 trillion on August 6, 2020. So far, the whale has raked in a profit of $109 million for its holdings. Meanwhile, it has about 2.15 trillion SHIB, or $52.18 million worth of Shiba Inu memecoins left.
A whale sold 250B $SHIB($6.05M) for profit in the past hour!
The whale spent $3.8K to buy 15.28T $SHIB($1.22B at the peak) as early as August 6, 2020.
This whale currently holds 2.15T $SHIB($52.18M), with a total profit of $109M on $SHIB.https://t.co/BWxcnWuwFR pic.twitter.com/aQZFPyhYSv
— Lookonchain (@lookonchain) December 19, 2024
Market price analysis provides a likely explanation behind the whale’s massive selloff. Notably, in the last seven days, SHIB has plunged considerably and disappointed investors anticipating a rally. SHIB has dipped by 6.97%, and attempts to post a rebound have been resisted.
SHIB’s price chart shows that Shiba Inu recently declined below its crucial 50 EMA, which remains a critical support line. This development has raised concerns among investors as SHIB lacks bullish momentum for higher support levels.
As of this writing, SHIB is exchanging hands at $0.00002413. Hence, the whale’s selloff might suggest a shift in the behavior of large holders. The declining price of SHIB could have triggered the whale’s decision to offload some of its holdings. Unintentionally, this massive sell-off could affect the mood of the SHIB market.
Investors, particularly, watch whale actions to gauge the market’s direction. Usually, large-scale liquidations such as this by the Whale could raise market volatility and frighten smaller investors.
More importantly, flooding the market with such a large volume at a critical support level is even more delicate as it could upset price movement further.
Shiba Inu Market Performance and Future Outlook
This development might cause new and seasoned investors to exercise caution or dump their assets on the market. If this happens, prices will experience a huge decline, which will put pressure on Shiba Inu. The ecosystem might have to employ strict measures to control supply.
With SHIB currently trading at $0.00002413, the next crucial support level lies close to $0.00002283 and $0.00002045.
This poses a huge challenge to the stability of the memecoin in the broader cryptocurrency space. The community might choose to activate its go-to price stability tool. This deflationary measure has remained its burn mechanism of sending tokens to dead wallets.
The coming days provide clarity for SHIB investors. If more whales begin to engage in massive selloffs, it might result in huge sell pressure and lower prices. Analysts expect SHIB leaders to act before that happens. Some still believe that the Elliot Wave patterns of SHIB signal a bullish prospect for the memecoin.
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