Today, a mysterious crypto wallet transferred over one trillion Shiba Inu tokens, dumping them at a Coinbase exchange. At the current exchange rate, that amounts to $12 million worth of Shiba Inu tokens, prompting concerns among holders.
How Crypto Whales Influence The Market
These are crypto wallets containing large amounts of digital assets and have a bad reputation for influencing the market. Whenever a whale transfers a sizable amount of crypto tokens, it leads to an excessive supply. The sudden rise in supply shifts the supply/demand equilibrium, causing the asset price to drop.
Most investors think that transferring a substantial number of tokens doesn’t imply a dump, but they do expect a huge major sell after such transfers. One trillion Shiba Inu tokens make up 1/500 of the overall supply, which makes the transfer seem like a minor bump. But if the whale decides to sell these tokens, such a significant number is enough to cause a dip in prices. To make matters worse, Shiba Inu Prices haven’t been looking good.
As of yet, major cryptocurrencies like Bitcoin correlate with assets like stocks, so if it makes a bullish or bearish break, altcoins like Shiba Inu will follow.
Analysts Predict Shiba Inu Crash
Since December last year, the animal-themed meme coin has been trading in a ‘descending channel.’ While it’s not a bearish cycle, it can help measure short-term fluctuations. If Shiba Inu doesn’t break past the current resistance level at $0.00004337, it could go back to its support level of $0.000010.
The price is consolidating in a range that could lead to a possible breakout. There are numerous fundamental issues with crypto, which explains the current downtrend. Despite starting numerous use cases to engage users, Shiba Inu was unsuccessful.
Pressure on Shiba Inu Developers For Failing to Launch Shibarium
Shibarium, the Layer 2 network, was set to begin its public beta testing phase around the end of Q3. Unification, the developers behind Shibarium, stated last month that alpha and public beta testing would launch at the end of the quarter. The statement led to excitement in the community, but eventual disappointment when testing didn’t launch as expected.
On Discord, members of the official Shibtoken channel asked why public beta testing hadn’t begun as promised. In response to the question, Shiba Inu developer, Shytoshi Kusama, stated that Unification gave the date for the launch. He explained that the official Shiba Inu team hadn’t given dates as to when the project will officially launch.
For many SHIB holders, the upcoming Shibarium project will be a crucial development for the ecosystem. Once the Layer 2 network launches, all of Shiba Inu’s projects, such as the SHIB token, SHI stablecoin, Shiba Eternity, and Shiboshi will migrate to Shibarium.