SHIB experienced a price slump in the early hours of Monday amid investor interest.
A SHIB whale transferred 100 billion SHIB tokens to Coinbase early Monday morning.
The memecoin recovered from the slump to gain 6.4% a few hours later.
SHIB, the native cryptocurrency of the Shiba Inu ecosystem, experienced a price slump in the early hours of Monday, May 13, amid investor interest. Onchain data showed that a whale transferred 100 billion SHIB to Coinbase, one of the leading centralized exchanges (CEX).
The whale’s action attracted the interest of the memecoin’s community members, triggering speculations over the short-term impact of the transaction. Furthermore, the significant transfer added more energy to the already-existing bearish sentiment in the Shiba Inu community.
While the identified SHIB transfer to Coinbase does not necessarily indicate a sell transaction, the speculations around it stem from the current plunge in SHIB’s price. Users of the dog-themed memecoin appear to be pondering about the implications of this transfer.
It is essential to note that in many cases, crypto users consider transferring digital assets to CEXs a sign that the holder may be planning to sell. They see it as an attempt to introduce the assets into an ecosystem where they can be exchanged easily for fiat or other crypto assets, unlike holding them in isolated portfolios.
Considering the available data, the whale purchased the said SHIB tokens at an average price of $0.00002408. Selling them at the current price would amount to a loss of about $178,000. The data also revealed that the wallet behind the SHIB transfer did not hold any other token, showing that all of its past transfers revolved around SHIB.The transaction led to a 4% drop in SHIB’s price on Monday morning. However, the flagship memecoin has recovered from the slump and pushed towards higher levels. Data from TradingView showed that SHIB traded for $0.00002370 at the time of writing, reflecting a 6.4% profit for the trading day.
The post SHIB Recovers From Early Shock Following 100 Billion Whale Transaction appeared first on Coin Edition.
