The price action of Shiba Inu (SHIB) has encountered a significant compression, primarily attributed to substantial selling originating from a prominent institutional market participant.
Data obtained from Lookonchain, a renowned on-chain analytics resource, has shed light on the ongoing selling spree by Voyager, a troubled asset manager currently navigating bankruptcy proceedings.
This selling binge over the past four days has amounted to an astonishing 1.4 trillion SHIB tokens, equivalent to approximately $14.4 million. The cryptocurrency landscape has witnessed a noteworthy development as Voyager, amidst its financial restructuring, embarked on an extensive liquidation of SHIB tokens.
Voyager’s Unloading Spree And Potential Implications On Shiba Inu
Lookonchain’s data revealed the staggering magnitude of Voyager’s sell-off, raising questions about the motives behind this sizeable divestment. Amid speculation, it’s important to note that the asset manager has now depleted its SHIB holdings, as confirmed by Lookonchain’s report. This intriguing turn of events prompts speculation about the potential impact on SHIB’s trajectory.
Voyager has been selling assets on #Coinbase for the past 4 days and has sold 49 tokens for ~$63M.
— Lookonchain (@lookonchain) August 15, 2023
As Voyager completes its selling spree, market watchers are keenly observing the ramifications on SHIB’s value. Notably, SHIB has demonstrated a commendable performance over the last seven days, exhibiting a robust 5.9% rally now trading at $0.00000998 via CoinGecko. While the cryptocurrency faced a 2.4% slump in the past 24 hours, this transient dip may be attributed to broader market sentiments influenced by seemingly unrelated news.
SHIB market cap currently at $5.8 billion. Chart: TradingView.com
News circulating about potential downgrades within the banking sector might have inadvertently contributed to the 24-hour slump witnessed by SHIB. It’s worth acknowledging that seemingly unrelated developments can trigger ripples of uncertainty across financial markets, ultimately impacting various asset classes, including cryptocurrencies like SHIB. Such negative sentiments, although momentary, have the potential to trigger short-term pullbacks.
Anticipating Price Rally Amidst Voyager’s Exit
The revelation that Voyager has exhausted its SHIB holdings could potentially pave the way for renewed price momentum. With institutional selling pressure alleviated, the cryptocurrency could be poised to continue its impressive performance from the past week. As SHIB hovers around its current value of $0.00000998, investors and enthusiasts are cautiously optimistic about the prospects of a sustained price rally.
Despite the recent slump, SHIB’s overall trajectory remains promising, supported by both its recent rally and the depletion of Voyager’s SHIB holdings. While the impact of institutional selling cannot be ignored, SHIB’s future gains may be bolstered by a reduced supply overhang.
SHIB’s upcoming performance will undoubtedly be influenced by a complex interplay of factors, ranging from market sentiment to macroeconomic developments.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from The Currency Analytics