Shiba Inu has been making headlines recently as the release of the Shibarium upgrade was teased by Shytoshi Kusama three days ago. However, things might not be going well outside the ecosystem. Recently, Whale Alerts noted several multi-billion SHIB transactions by Binance to an unknown wallet.
These recent transactions came after the Voyager altcoin transfers which included over 270 billion Shiba Inu coins worth over $3 million. This is especially discomforting for investors as this could set a negative mood in the next couple of weeks.
— Whale Alert (@whale_alert) February 3, 2023
Binance’s Transactions: What Are They For?
According to Whale Alerts’ recent tweets, the 6.4 trillion SHIB transfer happened in 14 separate transfers with six 499 billion SHIB transfers, two 450 million SHIB transfer, and a single 370 million SHIB transfer.
However, since these are only transfers, the price of SHIB has not been affected. But it is still a situation the community looks upon with trepidation. This isn’t the first transfer this week of huge amounts of the meme coin.
— Lookonchain (@lookonchain) February 2, 2023
Voyager recently transferred 270 billion Shiba Inu which, if sold to the open market, could put downward pressure on the token’s price. If the transfers are just transfers, the community should be confident that SHIB can hold out in the long term.
External And Internal Developments Empower Bulls
As it currently stands, the token is surrounded by hype around its Shibarium L2 scaling solution and FCF’s added support of SHIB just this week. This certainly would have an effect on SHIB’s price, which shows an impressive 17.7% uptick in the weekly time frame.
Shiba Inu Transfers Shouldn’t Bother SHIB Bulls
The current mega transfers of Shiba Inu to exchanges seem to not faze investors. As the time of writing, the token is trading at $0.00001383, a break above its current resistance at $0.00001226. This most recent breakthrough can give the bulls a necessary push to consolidate and permanently flip this resistance to support.
However, the situation of the mega transfers shouldn’t be taken lightly. Across both large transfers, it accounts for a total of $77 million which, if dumped on the market, could cause more pain in all time frames.
SHIB total market cap at $7.5 billion on the weekly chart | Chart: TradingView.com
But the current breakthrough is certainly a welcome for the Shiba Inu bulls. Hype plus real world utility for the token maintains the current bullish momentum. Short term, investors and traders could confidently target the token’s $0.000014 resistance.
However, caution should also be exercised. With major cryptocurrencies slowing down after smashing through their respective resistances, the token might experience a slowdown in momentum as well. Investors and traders should consolidate first above $0.00001226 then target $0.000014 in the long term.
Featured image by The Motley Fool