Crypto Markets Decline as Investors Take Profits Amid Inflation Report

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As a seasoned crypto investor with several years of experience in the market, I’ve seen my fair share of market fluctuations and price swings. Today’s sell-off, triggered by renewed fears ahead of the U.S. inflation report, is no exception. The sharp drop in Bitcoin and Ethereum prices was expected, but the memecoin sector took a particularly hard hit, with Shiba Inu (SHIB) being one of the worst affected.

The crypto market is undergoing a shift as investors are selling off their holdings in anticipation of the upcoming U.S. inflation report. Bitcoin, the leading digital asset, has decreased by 3.41%, currently priced at $67,231. Likewise, Ethereum has dropped by 5% to $3,486 at present.

Major altcoins are facing intense selling pressure, which could indicate a lengthy correction. However, the memecoin sector, in particular, took a significant hit. For instance, Shiba Inu (SHIB), the second largest memecoin by market capitalization, was also affected.

SHIB Price Drops as Whales Take Profits

Today, Data Nerd’s figures revealed that ten significant SHIB investors transferred a massive 4.29 trillion SHIB tokens, equivalent to approximately $97.33 million, into Coinbase. They had acquired these tokens in September 2021 and March 2024 at an average price point of $0.00001309 each.

Five hours ago, ten wallets transferred approximately 4.29 trillion Shiba Inu tokens ($97.33 million) to Coinbase. Notably, the ten wallets display identical transaction histories:

— The Data Nerd (@OnchainDataNerd) June 11, 2024

At the present price of Shiba Inu (SHIB) at $0.0000215, these investors are poised to realize a substantial profit of approximately $41.22 million. The intensity of selling from these investors exacerbated SHIB’s downward trend, causing it to plummet by nearly 25% within a single day and shrinking its market capitalization down to roughly 12.6 billion dollars.

Can SHIB Regain Its Footing?

As a crypto investor, I’ve noticed the intense selling pressure on SHIB, but I’m encouraged by the fact that the price has managed to hold above a crucial support level at $0.0000206. This level aligns with a 61.8% Fibonacci retracement level, which is a significant technical indicator. If buyers can successfully defend this level, they may be able to regain control of the situation and potentially see a rebound of up to 53%, taking SHIB’s price to around $0.000045.

If the price falls below $0.0000206, there’s a risk of further significant selling in the meme coin market. Investor confidence is already low due to upcoming U.S. inflation figures set for release this week.

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2024-06-12 01:57