Shiba Inu Drops After $70M Whale Transfer

Sean Williams
SHIBA INU (SHIB)

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Key Takeaways:

  • SHIB fell 13% after a 5T token whale transfer from Coinbase.
  • Support at $0.00001328 is crucial; SOPR suggests holders are not panic selling.
  • October has historically been a strong month for SHIB, averaging 213% gains.

Shiba Inu (SHIB) suffered a sharp 13% drop in the last 24 hours following a massive $70 million transfer flagged by Whale Alert. The transaction, involving 5 trillion SHIB from Coinbase Institutional to an unknown wallet, immediately spooked the market, sending prices tumbling to around $0.00001312. Trading volume soared to $522 million, revealing panic-driven repositioning across the SHIB ecosystem.

Whale Activity Triggers Market Jitters

The large-scale transfer raised eyebrows among traders and analysts alike. Whale movements are often seen as precursors to volatility, and this one was no exception. Coming at a time of broader market weakness, the whale dump intensified selling pressure on meme coins. Despite the selloff, SHIB outperformed Dogecoin in the downturn, managing to stay above a critical support level at $0.00001328.

This zone has now become the line in the sand. If it holds, SHIB could mount a short-term recovery. A breakdown, however, could send prices toward the next support near $0.00001200. On the upside, resistance stands at $0.00001417 and $0.00001558—levels SHIB must retake for any bullish continuation.

SOPR Shows Sentiment May Be Stabilizing

On-chain metrics offer a glimpse into investor psychology. The Spent Output Profit Ratio (SOPR) for July 22 came in at 1.0031, meaning most holders who moved SHIB that day did so at break-even or slight profit. This indicates a shift in sentiment: investors are no longer selling at a loss en masse, as they were earlier in the year when SOPR consistently stayed below 1.0.

This subtle shift could signal that selling pressure has cooled. Many SHIB holders now appear to be waiting out the storm rather than capitulating.

Also Read: Shiba Inu (SHIB) Eyes 800% Rally as Token Burns Explode 1,700% in 24 Hours

Historical Trends Offer Hope Ahead of October

Despite the recent carnage, historical trends suggest SHIB may not be down for long. According to data from CryptoRank, SHIB has posted green candles every October since 2021, with an average return exceeding 213%. As August nears, some traders are already looking to position ahead of what could be a strong seasonal rebound.

The $70 million SHIB whale transfer spooked markets and cracked near-term support, but not all signals are bearish. Key technical levels remain in play, SOPR is trending positively, and SHIB’s historical October performance hints at potential upside.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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