The crypto market is currently experiencing a spin as investors flee the market ahead of an upcoming U.S. inflation report. At the time of writing, Bitcoin, the largest digital asset, has dropped by 3.41% to $67,231, while Ethereum also dropped 5% to trade at $3,486.
While the renewed selling pressure hints at a prolonged correction for major altcoins, the memecoin sector was hit particularly hard. Shiba Inu (SHIB), the second-largest meme-coin by market cap, was not spared
SHIB Price Drops as Whales Take Profits
Earlier today, data from Data Nerd showed that 10 large SHIB wallets deposited a staggering 4.29 trillion SHIB tokens (worth around $97.33 million) on the Coinbase exchange over the past day. These whales had accumulated their SHIB holdings in September 2021 and March 2024 at an average price of $0.00001309.
With SHIB currently trading at $0.0000215, these investors are likely to cash out for a decent $41.22 million in profit This elevated sell pressure on SHIB worsened its decline, resulting in it losing almost a quarter within a day while its market capitalization dropped to about 12.6 billion dollars.
Can SHIB Regain Its Footing?
Despite the heavy selling, SHIB still holds above key support at $0.0000206, which coincides with a 61.8% Fibonacci retracement level. If buyers can defend this level, they could regain control and target a 53% rebound to $0.000045.
However, a breakdown below $0.0000206 could open the floodgates for another deep selloff in the meme coin. Market sentiment remains fragile ahead of this week’s crucial U.S. inflation data release.
Also Read: GameStop Tumbles 60% Triggering Meme Sector Panic
