Key Takeaways:
- Shiba Inu whale transferred $12 million worth of SHIB on Coinbase.
- SHIB technicals foresee a drop.
- Wider economic factors could back the bearish outlook.
YEREVAN (CoinChapter.com) – Early on Oct 5, an unknown wallet transferred over a trillion Shiba Inu (SHIB) tokens to a Coinbase exchange, igniting concerns from SHIB holders. The trillion tokens amount to over $12 million at the current SHIB/USD exchange rate ($0.0000113).
Shiba Inu whale giving up?
Whales, or wallets with large amounts of certain assets, are notorious for influencing the markets. In short, when a whale address ‘dumps’ a substantial enough possession, it creates a heightened supply. In turn, the ballooned supply deludes the supply/demand equilibrium and drops the asset price.
Notably, a transfer to exchange does not yet mean a dump. However, crypto investors have learned to expect a big sell after exchange transfers. As one Twitter user commented, one trillion SHIB tokens is only 1/500 of the total supply. However, it might be enough for a price depreciation in the upcoming sessions if the whale decides to sell.
Additionally, SHIB technicals were not hopeful as of Wednesday.
Shiba Inu (SHIB) Price headed for a crash?
The meme coin traded within a neutral setup dubbed the ‘descending channel’ since Dec 2021. The setup is not bearish per se, as it does not forecast a bias after SHIB breaks out of it. However, it can be instrumental in determining short-term fluctuations.
SHIB/USD price action stood at the channel’s resistance on Oct 5. If the digital asset is unable to break above it in the upcoming sessions, it could fall back to the support line at $0.000010 (purple on the chart). Meanwhile, the trading volumes do not appear bullish enough to help SHIB break the resistance.
What to expect?
One neutral pattern is not sufficient to make a foolproof prediction. Additionally, a crypto coin with a market cap north of $6 billion is unlikely to make a large move outside of the overall altcoin bias. Thus, any potential investor should watch out for macroeconomic clues to make an informed decision.
The overall health of the crypto market is not looking up yet, as the flagship crypto Bitcoin continues its correlation with risk-on assets, such as stocks. If BTC bottoms out any time soon and makes a bullish break, mem coins like SHIB are likely to follow suit. The same is true for a bearish scenario.
Also read: Bitcoin holders accumulate as BTC fails to hold $20K support.
