Main navigation

Half Trillion Shiba Inu (SHIB) Outflows as Shibarium Faces Uncertainty

Wed, 06/28/2023 - 13:02
article image
Gamza Khanzadaev
Large holders of Shiba Inu token dump half trillion SHIB in epic exodus
Half Trillion Shiba Inu (SHIB) Outflows as Shibarium Faces Uncertainty
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

In recent developments, alarming activity has been observed by IntoTheBlock around the on-chain data of the popular cryptocurrency Shiba Inu (SHIB), leading to significant outflows from the wallets of large investors. Previously bullish on the token, it seems they have now switched to bearish sentiment.

Source: IntoTheBlock

Since Monday, a staggering one trillion SHIB have exited the wallets of large investors, overcoming the inflow of 745 billion tokens. Consequently, the netflow of Shiba Inu whales' wallets in the past seven days reached a discouraging -377.35 billion SHIB, marking a significant half a trillion token drop from just the previous day's index value.

Shiba Inu Rings Alarm Bells: Here's What's Going On Behind Scenes of SHIB

Possible reasons

Upon examining the reasons behind this behavior of large SHIB holders, two key considerations come to light: fundamental and technical.

The first one revolves around the adoption of Shiba Inu and projects developed around the token. Among these projects, Shibarium takes center stage. Although the Layer 2 solution is currently functioning in a test network, the people in charge have been tight-lipped, offering little information beyond cryptic messages on Twitter. The uncertainty surrounding the progress of Shibarium's release on the main network may have prompted major holders to reduce their positions in the token.

Shibarium in July? Shiba Inu (SHIB) Executive Sends Mysterious Message

SHIB to USD by CoinMarketCap

The second factor pertains to the price of the Shiba Inu token, which last week failed to overcome the critical resistance level of $0.0000084 per SHIB. Despite an impressive run, the token experienced a 12% decline since then and is now trading in uncertainty. It is plausible that this ambiguity regarding the token's future price direction deterred significant whales, who operate with substantial sums and tend to exercise caution.

Will Shiba Inu manage to overcome these challenges and regain its momentum?

article image
About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.