Altcoin

Cumberland Moves 194 Billion SHIB, Price Dip Ahead?

Published

11 months ago

May 15, 2024

Coin2049 Newsletter

In a series of significant transactions over today, Cumberland, a major crypto trading firm, has moved a total of 194 billion Shiba Inu (SHIB) coins to various exchanges. This substantial movement has raised concerns among investors about a potential price dip for the popular meme coin. The large-scale transfers indicate a possible strategic maneuver by Cumberland, potentially aiming to capitalize on market conditions or execute a planned sell-off. Investors are closely watching these moves, aware that such significant shifts in holdings can impact the market price of SHIB.

Strategic Transfers to Coinbase and OKX Signal Potential Sell-Off

Recently, Cumberland transferred a whopping 144 billion SHIB, valued at approximately $3.3 million, to Coinbase. This large-scale deposit is one of the most significant single movements of SHIB to a centralized exchange in recent weeks. Earlier today, Cumberland deposited 50.36 billion SHIB, worth around $1.17 million, to OKX. These actions add to the cumulative amount of SHIB moved to exchanges, heightening speculation about the firm’s intentions.

Currently, Cumberland holds a much smaller amount of SHIB, with only 1.69 billion SHIB, valued at approximately $45,000, left in their possession. This dramatic reduction in their SHIB holdings indicates a strategic move to potentially offload their assets in the market. The transfer of such a significant volume of SHIB to exchanges like Coinbase and OKX suggests that Cumberland might be preparing to sell these assets.

When large quantities of a cryptocurrency are moved to exchanges, it often signals a sell-off, which can lead to a decrease in the asset’s price due to increased supply in the market. Market analysts and SHIB holders are now closely monitoring the situation. If Cumberland indeed sells their SHIB holdings, the influx of SHIB into the market could exert downward pressure on its price, leading to a dip. The community remains vigilant, as the next few hours will be crucial in determining the short-term price trajectory of SHIB.

Also Read: FLOKI Price Soars 14% Amid Revolut Listing, Rally To Continue?

Current Market Impact and Future Prospects for SHIB

While writing, SHIB’s price has increased by 4.01% in the past 4 hours and is currently trading at $0.00002374. The meme coin’s market cap stands at $13.94 billion, with 24-hour trading volumes at $689.4 million. Coinglass data pointed out a 0.47% increase in SHIB’s open interest, reaching $41.2 million, indicating heightened trading activity and increasing investor interest in the asset.

SHIB is currently trading between $0.00002421 and $0.00002292, illustrating the current market volatility. The Relative Strength Index (RSI) is at 61.42%, signaling some buying pressure on the token. Despite technical indicators showing mixed sentiments, further dips in the short term might be expected. However, looking at the long-term prospects, post-BTC halving events could potentially trigger a price rally in Shiba Inu, further supported by bullish aspects such as continued token burns and ecosystem developments.

Also Read: 10 Years Old Dogecoin Stack Dump Leaves DOGE Investor With Million-Dollar Loss