As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market dynamics and trends. The current situation with Shiba Inu (SHIB) is intriguing, to say the least. While the recent spike in large transactions could be a positive sign, it’s the potential selling pressure from Genesis Trading that concerns me.
Due to troubled crypto company Genesis Trading, Shiba Inu (SHIB) might experience high selling activity. This announcement follows an increase in major transactions related to the meme token, which is actually a positive sign, suggesting a potential price rise.
How Shiba Inu Could Face Significant Selling Pressure
According to Arkham Intelligence’s on-chain analysis, Genesis Trading holds approximately 21.9 billion Shiba Inu coins. This could potentially lead to increased selling of the meme coin as Genesis attempts to settle its debts with creditors, given that it has already outlined a restructuring plan and started making repayments.
As a seasoned crypto investor with years of experience in this volatile market, I have learned to keep a keen eye on industry news and events that could potentially impact my investments. This week’s headlines about Genesis, a major crypto lender, caught my attention. On-chain data suggests that Genesis has been actively moving its Bitcoin, Ethereum, and Shiba Inu (SHIB) holdings, indicating that it may be gearing up to repay its customers amidst bankruptcy proceedings.
Creditors could opt to keep their tokens instead of quickly selling them on the market. But if they decide to dispose of their tokens, it’s unlikely that Shiba Inu’s large investors (also known as whales) will intervene to mitigate the sudden increase in supply. Instead, these whales appear to have restored their trust in the second-largest meme coin by market capitalization and are resuming their buying spree.
Over the past few days, there’s been an increase in significant Shiba Inu transactions exceeding $100,000. According to market intelligence platform IntoTheBlock, these ‘whales’ exchanged approximately 9 trillion Shiba Inu coins on August 5th – a staggering 588% jump compared to the 1.53 trillion SHIB tokens traded the day before.
Meanwhile, over 3 trillion Shiba Inu tokens have been traded in the last 24 hours. As such, it is evident that these whales can help mitigate the impact of any sell pressure if Genesis Trading’s 21.9 billion tokens were to hit the market.
SHIBMaking Impressive Recovery
Shiba Inu has bounced back significantly after approaching the critical level of $0.00001 during the recent bearish trend affecting the broader cryptocurrency sector. Now, it aims to recapture the support at $0.00002, provided there are no major adverse macroeconomic events that could cause another market-wide dip, potentially pushing prices down once more.
Crypto expert Armando Pantoja has stated that the price of Shiba Inu could soon surge beyond its major resistance level, thanks to a bullish Relative Strength Index (RSI) discrepancy. He also suggested that the downtrend has concluded, and the meme currency is now at an optimal purchasing point. Moreover, he reaffirmed his belief that the value of Shiba Inu could reach $0.001.
Currently, as I’m typing this, Shiba Inu is being traded approximately at 0.00001373 USD, showing a decrease over the past 24 hours based on information from CoinMarketCap.
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2024-08-08 04:11