Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has experienced a significant price drop in the past 48 hours, mirroring the broader cryptocurrency market downturn. In the last 24 hours alone, SHIB has seen a 3% decline, with other meme coins following suit.
Contributing to this decline is a surge in whale selling activity. Crypto analytics firm Lookonchain recently flagged a large transaction where a whale sold 250 billion SHIB tokens, worth approximately $6 million, likely to secure profits before further price erosion. This follows a previous instance on December 16th where 43 billion SHIB tokens were transferred to an unknown wallet.
Potential for a Rally
Despite the current downtrend, the cryptocurrency market often witnesses cycles where meme coins experience significant price surges. This is particularly true during altcoin seasons, characterized by a shift of investor attention and funds from Bitcoin to other cryptocurrencies.
Several analysts anticipate an upcoming altcoin season, with whales observed moving assets away from Bitcoin. Furthermore, the potential for eased regulations in the United States, particularly with the recent change in political leadership, could significantly boost investor confidence and drive a renewed interest in meme coins.
A Look Ahead
The cryptocurrency market remains highly volatile. While the potential for an altcoin season and a more favorable regulatory environment in the US could fuel a SHIB rally, investors should remain cautious.
December 2024, Cryptoniteuae