The Shiba Inu (SHIB) market witnessed significant turmoil as nearly a trillion tokens were offloaded by major holders. This massive sell-off caused ripple effects across the market, intensifying fears among investors.
SHIB Futures Hit by Massive Liquidations
Yesterday’s market session recorded over $1.5 billion liquidated from long and short positions across cryptocurrencies. Within this, Shiba Inu (SHIB) accounted for $20 million in liquidations, primarily from open-ended futures contracts. Most liquidated positions were long, underscoring a bearish sentiment.
The SHIB token’s price plunged nearly 25% during the trading session, reaching levels not observed since late November. This decline created panic among traders and prompted a closer examination of on-chain data.
Net Outflows from Large SHIB Wallets Observed
Data from IntoTheBlock highlighted intriguing trends regarding SHIB’s large holders. The Large Holders Netflow metric, which tracks wallets holding at least 0.1% of SHIB’s circulating supply, showed a net outflow of 940.01 billion SHIB.
This significant reduction indicates that whales, or large SHIB investors, were actively selling off their holdings. The decline in net flow to large wallets had been ongoing since December 7, suggesting a pattern leading up to the sell-off.
Market-Wide Decline Amplifies SHIB Losses
The broader cryptocurrency market also suffered during the session, which played a critical role in SHIB’s downward trajectory. Although the price drop was not initiated by the whale sell-offs, their activity provided early indications of the market correction.
The sharp sell-off aligns with increasing market uncertainty fueled by upcoming U.S. Consumer Price Index (CPI) data and the approach of the January 3 deadline for critical regulatory decisions.
Monitoring Whale Behavior for Future Trends
In the current uncertain environment, tracking the actions of large market players, like SHIB whales, can offer valuable insights. Their movements often serve as a precursor to broader market trends.
As the crypto market braces for further shakeouts, staying informed about whale activity and on-chain metrics will remain crucial for SHIB investors. The significant sell-off has highlighted the vulnerability of the token’s price to actions taken by major holders, underscoring the need for vigilance.
Despite recent losses, Shiba Inu continues to hold a prominent position among meme-inspired cryptocurrencies. The next steps taken by SHIB whales and the overall market will shape its trajectory in the coming weeks.
