Whale moves $99M in Shiba Inu: Is a market correction imminent for the memecoin?

• Shiba Inu whale transferred tokens worth $99 million.
• SHIB declined by 7.7% on daily charts.

For nearly two weeks, memecoins and the broader crypto markets have seen a sustained uptrend. However, the past 24 hours saw a drastic shift in this trend, with most crypto declining on daily charts.

Amidst this shift, top memecoins including Shiba Inu [SHIB]  have experienced a sharp decline.  In fact, at the time of writing, SHIB was trading at $0.0000237. This marked a 7.77% decline on daily charts.

Before this, SHIB had been on an upward trajectory, hiking by 23.08% on weekly charts and by 32.12% on monthly charts.

The decline, although not an isolated case, raised questions about the potential factors pushing prices down. One of the factors that arises is a massive transfer by a whale.

Whale transfers four trillion SHIB tokens

According to an observation by Whale Alert, one wallet made a massive transfer of four trillion SHIB tokens worth $99 million to another unknown wallet.

This transaction has ignited considerable speculation within the SHIB community.

Usually, when large holders make transfers it creates market anxiety, especially among retail traders fearing mass sell-off. This is because such transfers can result in market volatility.

Impact on the price charts

As expected, the memecoin declined over the past day. This arises from the overall market sentiment as it seems to shift from highly bullish to cautious or slightly bearish.

Source: IntoTheBlock

This shift can be noticed, especially with increased Large holder outflow. According to IntoTheBlock data, SHIB’s large holders have increased their outflow to hit a three-month high of 10.55 trillion tokens.

This implies that larger holders were selling their assets, signaling their need to maximize profits to avoid losses if the price declines further.

Source: IntoTheBlock

Additionally, Shiba Inu’s total active addresses have declined from 30.1k to 18.96k over the past week. Such a drop signaled that the interest in the memecoin was waning.

Therefore, the reduced address activity reflected a shift in market sentiment with fewer participants involved, and it’s an early warning of a potential further decline.

Source: Santiment

Finally, Shiba Inu’s supply on exchanges was continually rising and settled at 146.08 trillion tokens. This further showed that investors were keeping their assets in exchanges where they could sell easily.

Simply put, SHIB was seeing a short-term shift in market sentiment. Although not an isolated case, the memecoin could see some more decline, especially in the short term to find support around $0.000022.

Read Shiba Inu Price Prediction 2024-25

However, with the overall market still bullish, this dip was likely a mere market correction before attempting another uptrend. If so, SHIB will reclaim $0.000026.

If this level holds, the memecoin will attempt $0.00003 resistance.