In the past 24 hours, a significant amount of Shiba Inu (SHIB) tokens have been on the move, with a notable portion of the activity involving US-based cryptocurrency exchange Coinbase. This has sparked speculation about the purpose of these transfers and their potential impact on the SHIB market.
Coinbase Facilitates Large SHIB Transfers
Despite the excitement from the upcoming auto burn portal, the transfer of a staggering 1.2 trillion SHIB tokens has caused a stir in the Shiba Inu community. What’s more interesting is that Coinbase initiated the movement of 797 billion tokens.
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The exchange began by transferring 307.8 billion SHIB, valued at approximately $2.8 million, to a newly activated deposit address at 16:24 UTC. These tokens were then quickly moved to another Coinbase wallet labeled “Coinbase 10,” bringing the total amount transferred to 615.7 billion SHIB across two transactions.
The Coinbase 10 wallet, believed to be affiliated with the exchange, received further millions of SHIB tokens, likely from customer deposits. Subsequently, this address distributed SHIB tokens in batches of millions to various other addresses, resulting in a cumulative movement of 797.94 billion tokens in three transactions.
Speculation and Uncertainty Surrounding Coinbase’s Motive
The purpose of these large-scale shuffles remains unclear, with some attributing them to routine internal fund movements within Coinbase. However, this explanation is contradicted by the CryptoQuant SHIB Exchange Netflow indicator, which reveals increased SHIB outflows from exchanges over the past seven days. This suggests that investors are not moving their SHIB to exchanges in preparation for selling, as some have speculated.
Another possibility is that Coinbase is facilitating the movement of SHIB on behalf of institutional clients. The receiving wallet currently holds 212.6 billion SHIB worth approximately $2.93 million.
This wallet only holds SHIB tokens, suggesting it may be controlled by a single entity. Additionally, Coinbase has deposited smaller amounts of SHIB (14.6 billion on Jan. 22 and 15.6 billion on Jan. 24) to this same wallet, further supporting this theory.
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Shiba Inu (SHIB) Facing Resistance
While the reasons behind the Coinbase transfers remain unknown, the broader SHIB market is grappling with its challenges. The token is currently trading at $0.000009194, precariously positioned above the $0.000009 level. CryptoQuant data suggests a neutral outlook, with the RSI and Stochastic indicators hovering around the middle mark.
Meanwhile, the recently surfaced predictions state the potential timelines for SHIB to reach $0.005 and $0.01. To reach these targets, SHIB would likely require favorable developments in the cryptocurrency market, such as increased adoption on DeFi platforms or wider utilization.
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