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Shiba Inu (SHIB), a popular meme coin, appears to witness a significant downturn in investor confidence. This comes after a single entity, speculated to be controlled by one person across 11 wallets, offloaded a massive amount of 533.6 billion SHIB tokens. The sale, amounting to $15.99 million in DAI, a stablecoin pegged to the U.S. dollar, occurred approximately 24 hours ago.
This transaction was highlighted by Spot On Chain, a blockchain analytics firm, which noted the substantial profit of $8.24 million, or a 106% gain, realized by the seller in less than a month. While this is a major sell-off for SHIB, it should also be noted that the whale has netted a massive profit by trading the meme coin.
Around 16 hours ago, 11 wallets (probably one person) jointly sold 533.6B $SHIB for 15.99M $DAI at ~$0.00003, realizing a joint profit of $8.24M (+106%) in less than a month!
— Spot On Chain (@spotonchain) March 31, 2024
Currently, these 11 wallets still hold the newly acquired $DAI. Which token will they buy next?
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However, the SHIB community is abuzz with speculation about the seller's next move, especially given that the 11 wallets still retain the acquired DAI. The question on everyone's mind is which token or tokens might attract the attention of this significant market player next. In essence, this transaction underscores the volatility and unpredictability of the market.
Shiba Inu slows down
This hefty transaction has seemingly put a damper on SHIB's recent rally. Despite an uptick of 0.21% in the last 24 hours, bringing the current price of SHIB to $0.00003033, the overall market sentiment appears to have cooled. Major market indicators support this view, with SHIB's 24-hour trading volume plummeting by 32.27% to $550.84 million.
Moreover, data from CoinGlass, a crypto analytics platform, indicates a 1.51% decline in Shiba Inu's open interest in the last 24 hours, currently standing at $107.40 million. Open interest denotes the total number of outstanding derivative contracts, such as options or futures, that have not been settled. For Shiba Inu, a decrease in this indicator suggests a reduction in trading enthusiasm and possibly a shift in trader strategy.
The unfolding developments from this significant sell-off will undoubtedly continue to be a focal point for both SHIB enthusiasts and the wider crypto market, as they collectively navigate the challenges and opportunities presented by such market movements. Overall, this episode shows the importance of market vigilance and the need for investors to remain informed in the face of rapid market changes.