Shiba Inu: How The Meme Coin Weathered Whale Dumping And Emerged Stronger

Shiba Inu

Shiba Inu (SHIB) is one of the biggest meme coins in the crypto market. Boasting a 24-hour trading volume of over $1 billion and a market cap of $12.5 billion, SHIB is ranked the 9th in CoinGecko’s top 100 list. 

The token has just been subjected to a massive whale push. Recently, a top whale address was revealed to have dumped 538 billion SHIB in the open market. However, the memecoin’s price has not changed that much. As of writing, the token is down slightly in the past 24 hours at 0.3%. 

But the token remains in the green in other timeframes, with the biggest gains being made back in the weekly timeframe at 9%. 

Developments Edge Bearish Momentum For Shiba Inu

SHIB experienced a 1.5 billion token burn in the past 48 hours. Koyo, a new and mysterious crypto project, has recently burned 1.49 billion on Friday. Collectively, the new project burned 8.75 billion SHB tokens since its inception. 

This resulted in the burn rate of the token skyrocketing to 3,000%. Adding on to this is the mysterious wallet that incinerated 16.7 million SHIB. At the token’s current price of $0.089854, the burnt SHIB is worth $1.5 million. 

Supporting this recent on-chain development is an overall positive sentiment in the crypto market. According to analysts, the recent significant inflow of liquidity in major cryptocurrencies like Bitcoin and Ethereum will be the leading cause of the next altcoin pump. 

German crypto influencer Hoss argued that the price actions of various cryptocurrencies would follow 2019’s crypto price action. He added that investors should expect volatility in the market as various cryptocurrencies jump and tank at the same time. 

SHIB Should Continue Holding On To This Level

The token is currently supported by SHIB at $0.00001098 and should continually be defended in the next couple of days. As the bears take momentary control of the market, SHIB might continue to oscillate above and below this support level.

SHIB total market cap now at $6.9 billion on the weekend chart at TradingView.com

However, this support has been the crucial level that stabilized SHIB’s price since the start of April. Because of this, investors and traders can target $0.00001219 in the medium to long term as the current price level is reliable support. 

For now, monitoring the current market situation will be very beneficial. Although CoinGlass data shows that short sellers outnumber long buyers at the moment, this might only be a temporary bearish control as the market experienced a significant influx of bullish sentiment. 

-Featured image from Healthline

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