SHIB Drops 10% After $70M Exit from Coinbase — What Next for Shiba Inu?

Following a $70 Million Transfer, SHIB Experiences a 13% Drop

Shiba Inu (SHIB) recently faced a significant downturn, sending ripples through the cryptocurrency market. A substantial $70 million transfer of SHIB from Coinbase Institutional to an unidentified wallet triggered a wave of selling pressure. This transaction, initially flagged by Whale Alert, led to an immediate market response. SHIB's price plummeted nearly 13% within 24 hours, settling around $0.00001312. Trading volume surged to $522 million during this period, indicating heightened activity as traders adjusted their positions.

Whale Activity and Key Support Levels

The abrupt movement of 5 trillion SHIB tokens has fueled speculation within the market. Large-scale wallet transfers often impact investor confidence, particularly during broader market corrections. While the motivation behind the transfer remains unclear, its timing coincided with a general market downturn. Meme coins, like SHIB, are often more susceptible to corrections, but SHIB outperformed Dogecoin during this recent dip. Despite the sharp decline, SHIB has managed to hold above a crucial support level at $0.00001328. This price point is now a critical battleground.

A successful defense of this level by buyers could lead to a short-term rebound. However, if this support breaks, the next significant area of interest lies near $0.00001200. This level could attract buyers, but a breach could also pave the way for further declines. On the upside, resistance levels are currently positioned at $0.00001417 and $0.00001558. According to analyst SHIB KNIGHT, the token was rejected at $0.00001558 prior to the recent slide. Sustained upward movement may be limited unless bulls can reclaim this level.

SOPR Signals and Historical Trends

On-chain data provides insights into the current market sentiment. The Spent Output Profit Ratio (SOPR) on July 22 was recorded at 1.0031. This figure suggests that most SHIB holders who transacted that day either broke even or realized marginal profits. Importantly, when SOPR remains above 1.0, it generally indicates that investors are less inclined to sell at a loss. Earlier in the year, SOPR remained below 1.0 for several weeks, reflecting a market characterized by loss-taking and low confidence.

The recent move above the breakeven point suggests that selling pressure has diminished. More holders appear to be holding onto their assets rather than selling. This subtle shift points towards stabilizing sentiment. Furthermore, SHIB has historically performed well in October. Since 2021, the token has recorded gains every October, with an average gain exceeding 213%, according to CryptoRank.

With August approaching and the recent selloff potentially behind us, some traders are already looking ahead to the fall. The $70 million SHIB outflow triggered a 13% drop and tested key support levels. Traders are now closely monitoring the $0.00001328 level for signs of strength or further weakness. SOPR data suggests that holders are remaining firm, without panic selling. Given its historical performance in October, SHIB could potentially surprise on the upside.