What is happening to Shiba Inu? Multiple questions erupt from the crypto community as more Shiba tokens steadily move away to crypto exchanges. Those monitoring the situation have reported that large amounts of Shiba Inu tokens have been moving to the deposit addresses of crypto exchanges.
SHIB blockchain explorer has shown popular exchanges such as Coinbase and Binance has seen many Shiba Inu tokens getting into the exchange. From the descriptions alone, one can see that Shiba Inu whales are the individuals behind the massive influx of transactions. But away from that, the new development might blow up and take Shiba Inu into the bear market. This is because massive moving and withdrawals of tokens can spell fear in the market.
When Shiba Inu whales become fearful, it can cause smaller holders, referred to as minnows or fish, to sell off their tokens. It's important to note that minnows or fish own less of the cryptocurrency compared to whales. In certain situations, the decisions of minnows may be influenced by the actions of whales, which is a possibility in the case of Shiba Inu.
Coinbase Tops the List Among Exchanges With Massive SHIB Withdrawals
Data shows that Coinbase is the major crypto exchange where crypto whales massively move large numbers of Shiba Inu tokens to. What does this suggest, crypto brethren? Coinbase is the primary exchange where SHIB movers operate, indicating that most of the whales are from the United States.
Aside from that, recent events in the SHIB ecosystem coincide with the current movements of the Shiba Inu price. The cryptocurrency has been experiencing a gradual decline in value over the past few weeks and months. Within the last two months, the price of Shiba Inu has dropped by over 19%. This is concerning, especially since there were various chances for the token to recover some of its losses by riding on bullish trends, such as the XRP partial ruling and the Blackrock Bitcoin spot ETF application. Is there something happening?
It appears that whales may be attempting to make significant profits off Shiba Inu tokens, as evidenced by the frequent movement and withdrawal of these tokens over the past few weeks.
Many Shiba Inu whales have been transferring the token to various crypto exchanges, possibly with the intention of converting it to stablecoins or fiat currency for withdrawal. As a speculative asset, Shiba Inu is subject to bearish trends, prompting traders to quickly withdraw their profits.
Does this new development mean Shiba Inu is doomed to hell? Well, it is not looking that way yet.
Current Shiba Inu Activities A Natural Market Cycle
Analysts have termed the current events happening in the Shiba Inu blockchain as a natural market cycle. For a highly speculative asset like Shiba Inu, traders will likely sell when they profit and buy again during bearish trends.
Moreover, the new activities around Shiba Inu might even benefit the token. Traders moving the crypto token to exchanges provides much-needed liquidity in such exchanges. This allows beginners and new investors to buy into the token, which is good for a future price increase.