Dog Days Over? Robinhood Moves 2.2 Trillion Shiba Inu Amidst Cooling Meme Market
Shiba Inu (SHIB), the self-proclaimed “Dogecoin Killer,” is facing choppy waters. A recent colossal transfer by Robinhood, a leading crypto exchange, has given jitters to SHIB enthusiasts, raising questions about the future of meme coins.
Robinhood’s Mysterious SHIB Shuffle
Late on June 20th, Robinhood transferred a staggering 2.2 trillion SHIB tokens, valued at roughly $40 million at the time. This maneuver has analysts scratching their heads, with some speculating it could be a prelude to a larger SHIB sell-off by the exchange.
— Whale Alert (@whale_alert) June 20, 2024
While Robinhood remains tight-lipped about the transfer’s purpose, its current holdings paint an interesting picture. The platform boasts a whopping 44 trillion SHIB tokens, making it the third-largest holding in its digital asset portfolio, only surpassed by giants like Bitcoin (BTC) and Ethereum (ETH). This immense SHIB stockpile suggests Robinhood is catering to a strong customer demand for the meme coin.
Meme Coin Mania: Fading Fad Or Future Force?
However, the outlook for meme coins like SHIB appears less than rosy. CryptoQuant, a prominent blockchain research platform, suggests the meme coin craze might be waning. Ki Young Ju, CryptoQuant’s CEO, predicts a shift in focus from “meme-based gambling” back to fundamentals, similar to trends observed a few years ago.
Memecoin dominance in alt markets is declining.
CT would be shifting from gambling to focusing on fundamentals, similar to a few years ago.
Pack it up lads, it’s over. pic.twitter.com/H5d81mRIJB
— Ki Young Ju (@ki_young_ju) June 19, 2024
This aligns with a broader decline in meme coin dominance. Ju points to November 2022 as the peak, highlighting a dramatic drop since. While March 2024 offered a glimmer of hope with a cycle peak of $56 billion for meme coins, it wasn’t enough to reclaim the all-time high dominance.
SHIB itself reflects this decline. The token reached a yearly high of $0.000044 in early March but has since plummeted a staggering 80% from its all-time peak of $0.000086 in October 2021. As of today, SHIB trades at a meager $0.000017, down nearly 30% in just the last two weeks.
SHIB Army Stays Strong Despite The DownturnDespite the bearish sentiment, SHIB retains some positive aspects. It remains a top-10 contender by global market capitalization, signifying a strong community presence. The dedicated SHIB Army, as Shiba Inu enthusiasts call themselves, continues to champion the token’s utility cases beyond its meme status.
SHIB Price Forecast
Meanwhile, according to current Shiba Inu price predictions, the token is expected to decline by 5.16%, potentially reaching $0.00001708 by July 22, 2024. Technical indicators reinforce this bearish outlook, with the Relative Strength Index (RSI) below 50, the MACD showing a negative trend, and the ADX indicating a strengthening downtrend.
Despite the bearish forecast, the broader market sentiment remains neutral with a Fear & Greed Index of 53. Over the past 30 days, Shiba Inu has had 37% green days and 11.58% price volatility, suggesting significant price fluctuations. However, the alignment of technical indicators supports the prediction of a potential price decline.
Featured image from Flickr, chart from TradingView
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