Shiba Inu whale unloads $18M on Binance; Is the meme coin rally over?

A Shiba Inu whale reportedly sent $18.12 million of SHIB tokens to the crypto exchange Binance. The transfer may have a domino effect on other meme coins on Ethereum, leading to a cooldown of the ongoing rally.

Also read: Shiba Inu coin price prediction 2024-2030: Is SHIB skyrocketing soon?

Spot On Chain noted in a post on X that whales ‘hodling’ SHIB and PEPE tokens cumulatively deposited almost $26 million on the exchange.

Shiba Inu could reflect on the meme coin market

According to Spot On Chain analysis, the whale has been accumulating the SHIB token since Q4 2023. Since the accumulation dates back to a market bottom, a potential sale could translate to a profit of $8 million at a return of almost 80%. The transaction can be tracked down to whale address 0x42a. It deposited 1.088 trillion SHIB tokens to Binance in the said transaction.

 

However, the broader weakness in the crypto market, with Bitcoin hovering near the $60,000 range, could be partially responsible for the movement. It could lead to further speculation that the recent rally of Ethereum-based meme coins could be coming to an end.

The selling pressure did not immediately cause price disruption for the meme coin. According to CoinGecko, SHIB is around the trading level of $0.0000172 at press time. This price point is almost a 1% increment on the daily charts. The numbers are better on the monthly charts with 30% gains.

Despite the sell-off and broader market weakness, SHIB continues to hold the 13th spot based on market capitalization on the platform.

In terms of regional impact, India could be a major market that is being impacted by SHIB price movements. According to the Wazirx Proof Of Reserve report from June 2024, Indian holders have a quantity of 5.44 trillion SHIB tokens on the exchange against the Bitcoin holdings of around 1,230. SHIB makes up approximately 25% of all holdings while BTC stands at 17.6%.

Half of all investors in profit

52% of all SHIB holders are sitting on a profit at the current price, as per IntoTheBlock analysis. 2% are breaking even with 48% having lost part of their capital. However, whale movements become very crucial for price prediction as the SHIB market is seemingly concentrated. The platform finds that 73% of the SHIB supply is held by large holders, making price volatility based on token movement very easy.

Returns for SHIB investors | Source: IntoTheBlock

For now, long-term holder sentiment doesn’t suggest impending weakness. 76% of SHIB holders have been holding their tokens for over a year, while 21% fall in the category of investors holding it for at least 1-12 months.

While SHIB’s price performance continues to show resilience, the broader market movement indicates a potential end to the meme coin rally. 

 

Cryptopolitan reporting by Shraddha Sharma