Why Shiba Inu (SHIB) Rallied 266% Following Biggest Dump In Its History
12 Octobre 2021 - 7:00PM
NEWSBTC
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. Related Reading | FTX CEO Sam Bankman-Fried
Reveals Reason Behind Billions Of Dollars Tether Purchase 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%. 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. Related
Reading | Bitcoin Over $100,000 Is Still Possible By Year-End,
Says Research Analyst 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
Ethereum (COIN:ETHUSD)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Ethereum (COIN:ETHUSD)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024