Shiba Inu (SHIB) has been on a rally for the past five days. However, there might be some downward pressure looming as a significant amount of SHIB tokens were recently transferred to Coinbase. The transfer was initiated by Voyager, a crypto lending platform that faced bankruptcy last year.
Voyager recently transferred a substantial amount of SHIB and ETH to Coinbase, totaling $5.47 million. This move, reported by Wu Blockchain, indicates that Voyager is currently liquidating its remaining crypto assets worth approximately $81.63 million.
Voyager was one of the largest holders of SHIB, owning 2 trillion SHIB, or 8.9% of the total supply, as of January 2023. However, the platform has been selling off its SHIB and other tokens since the beginning of the year, following its bankruptcy filing in July 2022.
Voyager’s bankruptcy was caused by the collapse of Terra, a stablecoin project that was hacked and drained of $150 million in December 2021. Voyager had invested heavily in Terra and lost most of its funds in the hack.
Shiba Inu Continues to Rally Despite Possible Selloff
Despite Voyager potentially selling off, Shiba Inu has shown remarkable market strength. It gained over 12.02% in the last week and broke above the $0.00001 level for the first time since May 2021. SHIB is trading at $0.000011, with an increase of 8.98% in the past 24 hours.
The SHIB rally has been fueled by several factors. These include the listing on Coinbase Pro, the launch of ShibaSwap (a decentralized exchange for SHIB and other tokens), and the increasing popularity of NFTs and gaming projects within the Shiba Inu ecosystem.
SHIB has a dedicated fan base known as the “ShibArmy.” This community actively promotes SHIB through social media, creating memes and artworks centered around the cryptocurrency. In addition, some members have generously donated SHIB to causes like the India Covid Relief Fund.
Not everyone is optimistic about SHIB’s future. Some crypto analysts caution that SHIB may experience a correction soon due to being overbought on certain technical indicators. For example, Ali, a crypto analyst, highlights the sell signal flashed by the TD Sequential indicator on SHIB’s 4-hour chart, indicating a potential short-term decline.
Investors in SHIB should exercise caution and remain vigilant for signs of market reversal or profit-taking. Despite its resilience and innovation, Shiba Inu remains a highly volatile and speculative asset susceptible to external influences beyond its control.
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