Shiba Inu has gained a lot of popularity and value in the past year, thanks to its catchy name, aggressive marketing on social media, and support from celebrities like Elon Musk. However, Shiba Inu has also experienced some volatility and challenges along the way.
One of the most recent events that caused a massive sell-off of the token was the movement of a large amount of SHIB by a mysterious whale. A whale is a term used to describe an investor who holds a large amount of cryptocurrency and can influence its price with their actions.
However, the token faced a sudden reversal of fortune after a brief surge of 15%. Within 30 minutes, a huge sell-off on Binance caused the price to plummet by more than 2.3%. The Buying Selling Volume indicator showed that 337 billion tokens were dumped on the exchange, triggering a market shockwave.
In a Matter of Hours, SHIB’s Price Took a Deep Dive
The price of SHIB dropped by 4% in an hour, as a massive amount of 800 billion tokens were sold. According to the indicator, Binance saw almost half of the selling volume, with about 412.44 billion SHIB bought during this time. This was a busy trading period, with a lot of activity happening in the first 30 minutes.
One possible reason for the sudden drop in the Shiba Inu price was the massive liquidation of over-leveraged long positions. These positions were opened by traders who entered the market late, hoping to profit from the Shiba Inu rally. However, they were quickly forced to close their positions at a loss when the price reversed, a situation known as a “long squeeze.”
The Shiba Inu token is a possible explanation for the recent market instability. Some analysts believe that when meme coins like SHIB and Dogecoin (DOGE) surge in price, they signal a shift in risk appetite among investors. They move their money from safer assets to more speculative ones, especially those based on internet jokes.
However, this also means that when these meme coins lose their appeal, investors withdraw their money quickly, causing a market-wide sell-off. Nevertheless, Dogecoin’s price remained stable today, which challenges this explanation.