Shiba Inu price surged 60% within the last three weeks but may be due for a correction.
Over 4 trillion SHIB tokens were moved to exchanges in the last two weeks, according to Ali—these tokens are possibly for selling.
In further detail, this movement could be whales taking profits or investors strategically selling to re-buy later.
Shiba Inu is currently down 15% from its local peak and needs to hold above $0.00002520 to avoid a larger drop.
A confirmed drop below $0.00002520 could mean a bearish takeover, however, Shiba Inu might still climb to $0.00004950 in the long run.
Shiba Inu has been under massive bullish influence over the last two weeks, considering its 60% rally between 13 April and 29 May.
However, it appears that investors have had enough, and may be making moves to take profits.
According to insights from a renowned analyst on Twitter (X), trillions of SHIB tokens have moved into crypto exchanges so far, most likely to be sold.
Let’s delve into this latest development, and what it might mean for the price of Shiba Inu.
According to new insights from renowned analyst, Ali Martinez, a whopping 4 trillion SHIB tokens have been transferred into exchanges within the last two weeks, painting a bearish picture for the memecoin in terms of price action.
Trillions of SHIB transferred to exchanges
As expected, this flood of Shiba Inu tokens into exchanges has sparked a wave of speculation within the Shiba Inu camp and in the rest of the crypto community at large.
For some context as to how huge this is, 4 trillion Shiba Inu tokens at the time of writing, are worth a staggering $103 million.
$103 million worth of any cryptocurrency flowing into exchanges across the board in two weeks is no small matter.
While this massive sell-off is undeniably present, there might be a few reasons why Shiba Inu investors are behaving this way.
The first of these possible reasons is the most obvious one. The whales might be selling and taking profits from the last multi-month rally.
However, other reasons might be related to investors taking profits from the last rally, in the hopes of re-entry.
As Shiba Inu struggles to retest and even break the $0.000035 peak from the last bull cycle, traders might still be bullish overall, with the current selling being part of a larger bullish picture.
Shiba Inu’s price action
According to the charts, Shiba Inu currently trades at around $0.00002527 and is down by 15% from the peak of the April to May rally around $0.00002945.
However, Shiba Inu is also testing support along the ascending trendline shown above, around $0.00002520.
While this sell-off from the investors is bad enough, the Shiba Inu bulls need to defend the $0.00002520 zone from the bears.
Shiba Inu will only turn bullish if we see a decisive daily (or even weekly) candlestick close below $0.00002520.
If this breakdown doesn’t occur, the memecoin remains poised to continue further upwards and even test $0.00004950 in the long run.
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