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SHIB Is Rebounding After Largest Dump in Token's History

Mon, 10/11/2021 - 10:16
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Arman Shirinyan
While remaining among the monthly return leaders, Shiba's recent retrace remains one of the biggest on the market
SHIB Is Rebounding After Largest Dump in Token's History
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After facing 300% growth and more than a 40% retrace, SHIB went through the largest dump in the token's trading history since the initial listing, according to Santiment. Back in May, after initial listing on Binance, SHIB token received a 250% pump but later retraced for 50% in two days. The most recent 42% dump took place inside of a single-day candle.

The dump perpetrators, according to on-chain data, were the small 1-10 million SHIB owners. Small wallets dumped more than 30 billion SHIB tokens directly on the market, creating major selling pressure. Due to the high number of overleveraged positions on the market and swift price increases, the strong support zones were not present in the order books.

Santiment Data
Source: Santiment

But after a quick retrace down, the buying power has thrown the meme token's price back to the previous opening price with 22% growth. The previously dumped 30 billion SHIB tokens have been redistributed among "micro traders," which have most likely set market buy orders after seeing the explosive growth of the asset.

SHIB Trading Volume on Derivatives Market Hit 78x Increase After 300% Growth

SHIB still remains a highly leveraged and volatile asset with the volume on derivative products remaining at extremely high levels. Previously, U.Today reported an abnormal number of leveraged positions on SHIB trading pairs that could have led to the acceleration of the possible retrace.

SHIB TradingView
Source: TradingView

At press time, Shiba Inu token trades with 10% daily growth while consolidating in the area of the local ATH. At the same time, traders are now losing interest in the asset, with trading volumes on Binance dropping from 240 trillion SHIB to less than 30 trillion.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.