While remaining among the leaders in monthly returns, Shiba’s recent retracement remains one of the largest in the market
After facing 300% growth and more than a 40% retrace, SHIB went through the largest dump in the token’s trading history since the initial listing, according to Santiment. In May, after the initial listing on Binance, the SHIB token received a 250% pump but was then retraced back to 50% within two days. The most recent 42% dump took place inside of a single-day candle.
The dumpsites, according to the channel’s data, were the little 1 to 10 million owners of SHIB. Small wallets dumped more than 30 billion SHIB tokens directly on the market, creating major selling pressure. Due to the high number of over-leveraged positions in the market and rapid price increases, areas of strong support were not present in the order books.
But after a quick retrace down, the buying power has thrown the meme token’s price back to the previous opening price with 22% growth. The previously undervalued 30 billion SHIB tokens were redistributed among the “micro traders”, who most likely established buy orders in the market after seeing the explosive growth of the asset.
SHIB still remains a highly leveraged and volatile asset with the volume on derivative products remaining at extremely high levels. Previously, U.Today had reported an abnormal number of leveraged positions on SHIB trading pairs which could have led to the possible acceleration of the retracement.
At press time, Shiba Inu token trades with 10% daily growth while consolidating in the area of the local ATH. At the same time, traders are now losing interest in the asset, with trading volumes on Binance dropping from 240 trillion SHIB to less than 30 trillion.
