The Shiba Inu Award crashed to $0.000007683 yesterday, sparking bearish sentiment towards the meme coin. This crash stemmed from a transfer of billions of SHIB tokens, raising concerns about a possible sell-off by the whale in question.
Why the Shiba Inu Price Crashed
The Shiba Inu price collapsed under significant selling pressure, trading at SHIB whale sending billions of tokens to Robinhood, likely offloading these tokens. Arkham data shows that the whale (0x2d0…9f7bB) first sent 210.365 billion SHIB tokens, worth $1.63 million, to the crypto exchange. These tokens represented approximately 97% of the whale’s SHIB holdings.
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Further data from Arkham shows that the SHIB whale sent another 1.52 billion tokens to Robinhood and 7 billion tokens to liquidity provider B2C2 Group, which could be an OTC sale. The Shiba Inu price has fallen by more than 7% in the past week, suffering its worst decline during this period yesterday, in the middle of the the whale transfers. The whale now owns just 5.86 billion SHIB, worth $46,790.
The Shiba Inu price also collapsed due to the sell-off in the broader crypto market, led by Bitcoin. BC fell to $87,000 yesterday amid concerns about trade tensions between the US and Europe due to the Trump Tariffs Linked to Greenland. However, the market recovered towards the end of the day Trump has announced that he had withdrawn the proposed tariffs after reaching a Greenland deal with NATO.
Despite Shiba Inu’s recent price crash, the meme coin is still up over 15% this year and is one of the best performing crypto assets this year. However, SHIb is still far from its current all-time high (ATH) of $0.00008845.
Alternating grid flows for SHIB remain mixed
SHIB’s exchange net flows have remained mixed, indicating that there is currently no clear accumulation pattern for the meme coin. CryptoQuant data shows that current net flows are negative, totaling just over 7 billion Shiba Inu tokens, indicating that there are more coins flowing into the exchanges than out.
However, the total net flows of the exchanges yesterday were positive, at 1.6 billion tokens, indicating more tokens are leaving the exchanges, which is bullish for the Shiba Inu price as it indicates whale accumulation. On January 16, SHIB’s net flows were also positive, totaling around 115 billion tokens. However, the positive net flows on that day were overshadowed by the negative flows of SHIB 214 billion recorded on January 20.
Related reading: This is why the Shiba Inu price rose more than 13%
Crypto traders still remain bullish on the Shiba Inu price CoinGlass data shows that the long/short ratio is currently above 1. Derivatives trading volume has also risen by more than 20%, while open interest has risen by almost 3%.
At the time of writing, the Shiba Inu price is trading around $0.000007978, up in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com