SHIB crashes 20% after whale dump and Kraken blunder

Key Shiba Inu Takeaways:

• Self-proclaimed ‘Dogecoin killer’ Shiba Inu lost 20% after Kraken announced it would list the meme-coin, but didn’t.
• A wallet holding 16% of the total SHIB supply dumbed half of its content, facilitating the decline.
• SHIB traded in a descending triangle.

YEREVAN (CoinChapter.com) – Shiba Inu coin (SHIB) lost 20% since Nov 2, despite the ubiquitous recovery wave across the altcoin market. A substantial whale dump and failed Kraken listing expectation could be the reason behind the decline.

Kraken listing slip

Crypto exchange Kraken rashly promised Shiba Inu holders to list SHIB on Nov 3 if the tweet got 2,000 likes, pinning the decision on Brian Hoffman, the Product Lead at Kraken. However, the exchange might have slightly underestimated the results and bit more than it could chew.

The said tweet got over 80 thousand likes as of Nov 4, but Kraken did not hurry to keep their promise. Instead, they cited the necessity for a proper listing procedure and added that “there’s more work to do” before the listing comes through.

Kraken’s ‘buy the rumor sell the news’ move unleashed a wave of angry SHIB owners. The comments ranged from polite displeasure to pure profanity. Additionally, some users accused Kraken of market manipulation, as the first tweet helped pump the digital asset 16%. However, after the second tweet, the price went south and cost the meme coin valuation 20%.

Also read: Shiba Inu resumes bull run amid Tesla adoption rumors

Trading platform Coinnbase Pro, on the other hand, prepared SHIB-GBP and SHIB-EUR pairs to trade on their order book.

However, Kraken’s blunder was not the only reason behind SHIB’s decline.

Disappointed whales?

A wallet that famously turned its $8,000 worth of SHIB investment in August 2020 to $5.7 billion in Oct 2021 dumped $2.2 billion in four separate transactions. The wallet was inactive since the purchase, so many speculated that the owner could have lost their key and never accessed the profitable investment.

Also read: Shiba Inu (SHIB) selloff set to benefit Bitcoin? This Bloomberg strategist thinks so.

Lo and behold, the said wallet was “alive” and controlled 16% of the SHIB market cap. Additionally, the top 10 wallets control over 72% of all SHIB supply. The whale dump and the regrettable listing promise saw SHIB at $0.0000055 in the European session Thursday.

SHIB daily chart

Before the decline, the SHIB/USD pair traded in a Descending Triangle. The bearish pattern features a descending resistance line and a horizontal support line. They contain the price action and lower the price swing amplitude.

Also read: Dogecoin price rallies 25% alongside rival Shiba Inu amid meme coin boom.

After SHIB exhausted the formation, it broke out above the resistance trendline but went south in the wake of the news listed above. As a result, the digital asset sought assistance from the $0.000055 support line on Nov 4. If Shiba Inu holds the support, it could recover in the upcoming hours and undo the damage, at least partially.