Whale Activity Triggers Sell-Off: SHIB and PEPE Selloffs Spark Bearish Sentiment

  • Meme coin prices are experiencing a sharp decline after two major whales dumped significant amounts of SHIB and PEPE.
  • This has triggered a wave of bearishness across the meme coin market, with investors fearing a potential end to the meme coin boom.

The once-booming meme coin market seems to be facing a potential slowdown, with significant price drops raising concerns among investors. This follows a period of substantial price rallies for meme coins like Shiba Inu (SHIB) and PEPE.

Whales Trigger Market Jitters:

Recent data from Spotonchain revealed massive selloffs of SHIB and PEPE by two large holders, often referred to as “whales.” These selloffs, totaling $10.6 million, sent shockwaves through the market, with SHIB and PEPE prices dropping 4% and 10% respectively within a 24-hour window. Notably, the whales involved made significant profits.

Address 0xd6b, for instance, purchased a staggering 15.2 trillion SHIB four years ago for a mere 10 ETH (Ethereum). This investment has now yielded an estimated profit of $129 million, with the whale still holding onto 2.6 trillion SHIB.

Also Read: Shiba Inu Soars: Is This a Bullish Breakout or a Short-Lived Rally?

Bloodbath Across Meme Coins:

The selloffs by these whales coincided with a broader decline in the meme coin market. Dogecoin (DOGE) and Floki Inu (FLOKI) also witnessed price drops ranging between 2% and 5%. This synchronized slump suggests a potential shift in market sentiment, with investors turning bearish on meme coins.

Derivatives Data Hints at Downturn:

Data from Coinglass, a cryptocurrency derivatives tracker, further strengthens the bearish outlook. The open interest (OI) for SHIB and PEPE witnessed a significant plunge, indicating that investors are exiting or closing their positions. Additionally, a substantial drop in volume points towards reduced market activity.

Is the Meme Coin Bubble Bursting?

The collective price slump and the bearish sentiment surrounding meme coins have led many investors to believe that the meme coin boom might be nearing its end. This fear of further selloffs by major holders could potentially trigger a domino effect, pushing prices down even further.

Caution Urged for Investors:

The recent developments highlight the inherent volatility associated with meme coins. Investors, particularly those new to the crypto market, should exercise caution when dealing with these assets.

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