Why Shiba Inu (SHIB) Rallied 266% Following Biggest Dump In Its History

Shiba Inu (SHIB) is still on a bull trend after its meteoric rise last week. The asset had rallied 266% and by the time the rally reached its peak, SHIB had grown over 400% in a matter of hours. Its sudden rise in price has been attributed to a number of things. One of the most prominent being the tweet by Elon Musk of his pet Shiba Inu which he had gotten last month.

However, the price recovery had occurred at a point where the asset had been seeing massive amounts of coins dumped that led to a dip in its price. SHIB had hit a new six-month high at this point and sell pressures had mounted in the community. This was mostly due to the history of the meme coin which has no utility to speak of except the hype from its backers.

SHIB Holders Dump Billions

Santiment reported the digital asset had seen a record dump following its price rally. A reported 31.07 billion coins had been dumped by holders. Mostly from wallets that held between 1 million to 10 million SHIB in their wallets.

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An interesting fact about this dump was that it had been mostly small traders who were dumping their bags. Contrary to expectations, Shiba Inu whales have mostly held their bags through the rally. While small-time traders shed their holdings onto micro traders.

The dump patterns had shaken the price of the asset, causing its hold on its new highs to falter in the meantime. But this would prove to not have a lasting effect on the market given that the price of the digital asset had rebounded from its Thursday lows, with a green seven-day trading average of 83.45%.

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Shiba Inu price chart from TradingView.com

Shiba Inu price chart from TradingView.com

SHIB price falls to $0.000028 | Source: SHIBUSD on TradingView.com

Shiba Inu Benefiting From The Altcoin Craze

Bitcoin has shown investors the potential of investing in cryptocurrencies. But at its current value, investors have moved on to find what could be ‘the next bitcoin’ and altcoins have generally benefited from this sentiment.

The push for short-term gains in the market is also a reason behind the success of meme coins like Shiba Inu. Over the long term, top cryptocurrencies like bitcoin and ethereum have proven to be the better choice. Altcoins, however, have shown the most promise with short-term gains, especially coins which are hype-driven.

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Projects like these will experience significant price movements in reaction to things like a celebrity tweeting or posting about them. Investors can see massive gains from investing in these projects in just a matter of hours. But these coins crash as quickly as they had risen. Usually due to the hype around them dying down. Or in worst-case scenarios, the developers execute a rugpull and leave investors to deal with their now worthless coins.

Featured image from CoinGecko, chart from TradingView.com


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Bitcoin Will One Day Close a $40,000 Daily Candle, says BTC Advocate Jimmy Song

Bitcoin (BTC) has made the crypto space to erupt in all manner of praise after the leading cryptocurrency went through the roof to break an all-time high (ATH) price of $20,000 set three years ago. BTC has been on a frenzy gaining more than 13% in the last 24 hours and now trading at an astonishing $22,160 at the time of writing, according to CoinMarketCap.

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Jimmy Song, a leading Bitcoin educator and advocate, has taken to Twitter to reveal that this price rally made BTC’s daily candle to gain more than $1900. He tweeted:

“The daily candle just closed +$1900. That’s more than double what Bitcoin was worth 4 years ago. Someday, we’re going to see a +$40,000 candle.”

He, therefore, suggests that the current price surge is the tip of the iceberg on what awaits the top cryptocurrency because a time will come when BTC’s daily candle will gain by more than $40,000. 

His sentiments can be echoed by the fact that institutional investors are no longer in oblivion to the huge potential Bitcoin has to offer as an inflationary hedge, especially at a time when global governments are employing financial initiatives like quantitative easing (QE) to tame the economic turmoil triggered by the coronavirus (COVID-19) pandemic. 

For instance, earlier this month, institutional investors pumped a whopping $429 million into crypto funds and products, with BTC taking the bulk at $334.7 million. This record-breaking move became the second-highest weekly inflow after $468 million was recorded in mid-November.

As Bitcoin continues to make history, Tyler Winklevoss, the CEO of Gemini, spared a moment to poke crypto critic Peter Schiff, who appears as adamant as ever that the market is rising on pure speculation. Schiff has emerged to be a notorious critic of Bitcoin’s true value, especially compared to safe-haven asset gold.

Image source: Shutterstock


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Bitcoin (BTC) $ 27,126.27 0.64%
Ethereum (ETH) $ 1,679.38 0.29%
Litecoin (LTC) $ 66.22 0.84%
Bitcoin Cash (BCH) $ 239.19 1.54%