Shiba Inu (SHIB) has remained ensnared in a consolidation phase since the start of 2024, trading mainly in the $0.00002 threshold. This protracted weakness has kept investors poised at the edge of their seats, yearning for a notable surge in either direction. This week, the meme coin continued to show weakness, with prices persisting in their descent following a sudden dip on Friday.
The exacerbation of this weakness, particularly evident on Tuesday, can be partially attributed to fear after several wallets sent close to $100 million worth of SHIB to exchanges. In a tweet, popular crypto sleuth “The Data Nerd” highlighted an instance where approximately $97.33 million worth of SHIB was deposited into Coinbase in the wee hours of the day.
Notably, the transfer involved 10 wallets, all exhibiting coordinated movements. According to “The Data Nerd,” these wallets have accumulated SHIB since September 2021 and March 2024, with an average entry price of $0.00001309. At the current price levels, these holders stand to make significant profits totaling roughly $41.22 million, potentially signaling their intent to sell.
It is important to note that while the whales may not particularly dump SHIB, investors are particularly wary of the implications of such large deposits to exchanges. Historically, significant inflows of cryptocurrencies to exchanges have heightened market volatility, leading to sudden and drastic price fluctuations. The possibility of profit-taking by these holders further exacerbates concerns about the short-term outlook for SHIB.
However, amidst these apprehensions, there are contrasting reports. In a separate tweet, “Whale Alert,” a service that tracks huge crypto transactions, reported a 600 billion SHIB transfer worth approximately $13.71 million from Robinhood to an unknown wallet. Contrary to the Coinbase case, this move signals a strong inclination towards “HODLing” among large investors, which is bullish for price.
That said, amidst these developments, analysts maintain their anticipation of a potential rally for SHIB to the highly anticipated $0.001 price in the medium to long term. In a recent post on TradingView, analyst “Vibranium Capital” pointed out that while the current price consolidation may persist for a while, he foresees a bullish surge to the range of $0.000054 to $0.000088 in the medium to short term.
At press time, SHIB was trading at $0.000021, reflecting a 2.44% drop in the past 24 hours.
