Shiba Inu (SHIB) Price Continues To Decline – What’s Causing The Drop?

The past few days have seen a decline in the price of crypto assets such as Shiba Inu (SHIB), with inflation and other macroeconomic factors in play, as other cryptocurrencies registered gains.

Macroeconomic factors have historically impacted crypto prices. Recently, the FUD (fear, uncertainty and doubt) levels in the market were high, taking a toll on crypto and investor sentiment. Meanwhile, the Binance vs. Reuters tussle sparked a considerable amount of withdrawals from the exchange.

However, anxiety is reducing, and normalcy has returned to the market. Bitcoin and other altcoins have recorded gains in the past 24 hours as the market looks to recover. But Shiba Inu has dipped in the last 24 hours, losing above 7% of its value to trade at $0.0000088.

Lookonchain, an on-chain analysis platform, reported that a whale transferred 207.2 billion SHIB tokens valued at $1.9 million to Binance.

The transfer took place at 01:54 PM UTC. This whale also dumped close to 4 billion tokens in a 7-day timeframe pushing the sell-off figures to more than 210 billion.

This transfer affected the price, making it lose 3% a few hours after the transfer. The ripple effect of this activity also caused the asset to fall below its support level by another 3%. The coin price decreased by 6% before the U.S. Federal Reserve revealed its rate hike decision.

The controversial whale had moved 3.49 trillion SHIB for 2.37 ETH, valued at $2,233 via Uniswap in 2020. It spent 1.83 ETH on 2.27 trillion SHIB tokens and 1.22 trillion using the addresses 0x5952 and 0x92f2.

The whale made its last purchase on February 9, 2021, and has only sold Shiba Inu since then for profit. After the token rallied in 2021, the whale took short positions for its holdings.

Lookonchain places the total token sold by this whale since April 13, 2021, at 2.94 trillion SHIB. The whale will make close to $18.3 million if it sells at the current market price.

With much holdings and financial might, this whale can influence the price of SHIB at will whenever it decides to resume selling.

The wallet address reveals that this particular whale has 546 billion in store, valued at $4.84 million. The sell-off has increased the circulating supply and has consequently reduced its value. Investors will watch this whale closely as the general crypto market gears up for a revival.