SHIB Rebounds Despite Coinbase Getting 100B SHIB Coin Dump

100B SHIB dump on Coinbase triggers an unexpected price reaction, but how sustainable is the latest SHIB price trend reversal?

Shiba Inu dancing in a shower of golden coins on a mountain top.
Created by Gabor Kovacs from DailyCoin
  • Top American crypto exchange Coinbase gets injected with 100B SHIB.
  • Derivatives markets return with abundant activity in SHIB & 1000SHIB.
  • Shiba Inu whips up 6% gains despite $52M in sales on Spot markets.

Shiba Inu (SHIB) is bouncing back after a week of trading in a downward parallel channel. Starting the week at a new 7-day low of $0.00002164, SHIB picked up 6% immediate gains after the leading digital asset Bitcoin (BTC) increased from $60,800 to over $63,000 on Monday morning.

Right before the price trend reversal kicked in for SHIB, one holder decided to inject Coinbase with a whopping 100 billion SHIB worth $2.24 million at stamped transaction time. This whale action has drawn attention, as depositing large amounts of cryptocurrency is usually deemed a bearish sign due to the high chance of a sell-off.

https://twitter.com/OnchainDataNerd/status/1789868967676494313

While the aforementioned big player accumulated those SHIB tokens in a matter of weeks for an approximate price of $0.00002408, the trader would make $2.35 million for the same amount, incurring a loss of under $50K. The current SHIB price is slightly below the buying range at $0.00002343. 

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Upon further investigation by DailyCoin, it was found that the sender’s cryptocurrency address held no other assets except ‘dust’ amounts of Ethereum (ETH).

Here’s Why SHIB Bounced Back Despite 100B Dump

Amid the hefty whale action, Shiba Inu’s Derivatives markets have rapidly increased 146% over the latest 24-hour period. Totaling $156.44 million in Derivatives trade volume, the Open Interest (OI) rating has also picked up 10.33% gains, indicating that Futures traders have a renewed interest in the popular meme coin.

SHIB stats.

Meanwhile, the 1,000 times multiplied 1000SHIB contract has also seen similar revitalization with a 161% hike in trading volume, topping $331.31 million over the past 24 hours. While Derivatives traders have placed more short SHIB positions than longs in the last 24 hours, OKX users are the most bullish on SHIB with a 2.65 long versus short ratio. Judging by liquidations, SHIB’s long position holders had a hard time with $1.1 million in long SHIB liquidations over the past 24 hours. Short sellers incurred a $635K combined deficit in SHIB and 1000SHIB smart contracts on the Crypto Derivatives markets.

On the Flipside

  • Despite SHIB’s rejuvenation in Derivatives markets, the newly piqued interest in the token has yet to transform into Shiba Inu’s Spot markets.
  • According to CoinPaprika, the #12 ranked Shiba Inu plunged by 10% in trading volume, while SHIB sales outweighed the bids by over $11 million.

Why This Matters

Shiba Inu is a long-term TOP 10 contender with a rapidly growing community and yearly return of 164.5%, based on the latest 365-day timeframe.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.