In a startling change of events, the Shiba Inu token quickly saw its fortunes flip around after celebrating an impressive 15% rise. Everything changed in less than 30 minutes when a major sell-off sent shockwaves through the market and caused a price decrease of more than 2.3%. The Buying Selling Volume indicator revealed that Binance was the focal point of this upheaval, as an astounding 337 billion tokens were sold there.
There was a rush of activity in the half-hour before that as well, which led to a 4% price fall over the course of the hour and the offloading of an enormous 800 billion tokens. The indicator also showed that, at around 412.44 billion SHIB, the purchasing volume on Binance during this time period was roughly equal to the selling volume.
This abrupt decline may have been caused by a series of liquidations prompted by late-arriving traders looking to profit on the Shiba Inu price bubble. Many of these latecomers had taken up long positions using excessively high leverage, only to have their investments quickly destroyed by the market, a situation known as a “long-squeeze.”
Curse of meme coins
It’s interesting to note that the Shiba Inu token itself may be partly to blame for the current market turbulence. The predominant hypothesis holds that market dumps frequently precede meme currency pumps.
Capital cycling in the financial markets, where money moves from less risky assets to more speculative ones, especially meme tokens like SHIB and Dogecoin (DOGE), is what causes this trend to arise. As a result, a market-wide dump occurs after the inflated value of these assets, which is frequently followed by a capital outflow.
The fact that Dogecoin did not suffer a comparable increase today, however, is significant because it calls into question this notion.
