Shiba Inu (SHIB) Sees Surge of Selling Pressure Because of This Meme

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Written By Maya Cantina

Sun, 3/03/2024 – 14:32

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Recently, Shiba Inu has witnessed a remarkable shift in investor behavior, which saw so-called “smart money” pivot their positions from SHIB to Memecoin.

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This strategic reallocation was significant: A SHIB whale deposited a colossal sum of 75.9 billion SHIB, valued at approximately $1.65 million, to the Binance trading platform and realized an impressive 85% profit — a gain of $756,000 in just two days. Subsequently, this investor withdrew 38.85 million MEME, equivalent to $1.62 million, from Binance.

SHIBUSDT Chart
SHIB/USDT Chart by TradingView

SHIB, after a sustained period of high interest and price appreciation, began to show signs of retracement. This pullback can often be attributed to large holders, or “whales,” deciding to take profits after significant price increases. In the case of SHIB, the sudden transfer of a substantial amount of tokens to an exchange is typically indicative of a selling intention, creating downward pressure on price as the market absorbs the additional sell orders.

Conversely, MEME’s price chart showed strong upward momentum, attracting the attention of investors seeking to capitalize on emerging trends. The transition of funds from SHIB to MEME by the whale suggests a calculated move to diversify into assets with perceived upward potential, driven by market analysis, sentiment gauging, or perhaps even insider knowledge.

The reasons behind such behavior by SHIB whales can be multifaceted. These can range from taking advantage of arbitrage opportunities, risk management through diversification, responding to changing market narratives, or simply capitalizing on short-term price movements for profit.

However, the more likely reason is a simple underdevelopment of Memecoin’s price performance compared to Shiba Inu’s. MEME has not really broken through during the most recent cryptocurrency market bull run and offers way more growth potential than SHIB, which has already gained more than 100% in the last few days.

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