Shiba Inu Investors Move 4.29 Trillion SHIB to Coinbase; What’s Next?

by

As an experienced analyst, I believe that the recent sell-off in the cryptocurrency market, particularly in memecoins like Shiba Inu (SHIB), was influenced by investors’ uncertainty regarding upcoming U.S. Consumer Price Index (CPI) data. The renewed supply pressure and seller dominance led to a notable correction in SHIB’s price, causing it to plunge 26.8% to currently trade at $0.0000215 while its market cap dropped to $12.6 billion.

On June 11th, there was a surprising drop in cryptocurrency values, possibly due to investor anxiety over upcoming US Consumer Price Index (CPI) data. Bitcoin dipped 3.62% to $66,875 and Ethereum dropped 5% to $3,480. This downturn could indicate a longer correction period for many major cryptocurrencies. However, the sell-off was more pronounced in the memecoin sector, causing significant corrections in their respective prices.

How Ethereum ETF News is Influencing SHIB’s Price Action

Shiba Inu Investors Move 4.29 Trillion SHIB to Coinbase; What’s Next?

The second largest cryptocurrency by market capitalization, SHIB, has been holding steady in its trading over the past two months. During the recent upturn in May, Shiba Inu‘s price found footing above $0.0000206 and established a local base.

The alignment of this support with the 61.8% Fibonacci retracement level makes it a significant point of attention (POA) and hinders any more price reduction. Nevertheless, due to Bitcoin’s difficulty in maintaining prices above $70000, SHIB‘s recovery trend is restricted below $0.000029, leading to a constrained daily chart range.

Despite the volatile wider market, the value of Shiba Inu coins dropped by 26.8%, now standing at $0.0000215. The market capitalization followed suit, decreasing dramatically to reach approximately $12.6 billion.

Analyst OnchainDataNerd drew attention to notable shifts in SHIB token holdings via a recent tweet. Specifically, ten wallets transferred a combined total of 4.29 trillion SHIB (equivalent to around $97.33 million) to Coinbase. The activity from these wallets follows recognizable trends, as they amassed SHIB during two distinct timeframes: September 2021 and March 2024.

5 hour ago, 10 wallets deposited 4.29T $SHIB (~$97.33M) to #Coinbase
10 above wallets have the same movements:
Those $SHIB were accumulated in 2 different times: Sept 2021 and March 2024
The avg entry is $0.00001309 the profit will be $41.22M if sold all at current price
— The Data Nerd (@OnchainDataNerd) June 11, 2024

As a researcher studying the data on these holdings, I’ve calculated that the average cost basis for these positions is around $0.00001309. This means that if these holdings are sold at their current price, there is a potential profit of approximately $41.22 million. However, it’s important to note that this transaction volume could put extra pressure on the SHIB supply, potentially increasing the likelihood of a return to the $0.0000206 level.

If the foundation beneath holds firm, buyers can regain control and revive the bullish trend for Shib, setting the stage for another period of sideways movement.

As a crypto investor, I believe that for us to take back control of our SHIB investment, we need to see a breakout above the current resistance level at $0.0000296. If this happens, it could trigger renewed optimism and send the price target soaring by as much as 53%, potentially even challenging the $0.000045 mark.

Technical Indicator:

    EMAs: The 200-day Exponential Moving Average slope wavering close to the $0.0000206 level will provide buyers with additional support to revert the coin price higher.
    Moving Average Convergence Divergence: A bearish crossover between the MACD and a signal line extending below the midline indicating the seller is currently the dominating force in SHIB trading.

Read More

2024-06-11 23:05