We’ve spent the season watching the puppy pack prove how well it can hunt as Dogecoin (CCC:DOGE-USD), Shiba Inu (CCC:SHIB-USD) and Floki Inu (CCC:FLOKI-USD) have rocked to impressive, and in some cases record-setting, highs. Today may mark a turning point, though. Crypto prices are down across the board and these pupcoins are all deep into the red. A look into market trends of the day reveals that SHIB prices are plunging because the token has experienced its largest-scale investor selloff in months. The puppy pack is so named in part because its members often move together. Today has been no different.
What’s the Matter With SHIB Prices?
In short, they’ve been falling for three days. The reason why requires a more in-depth explanation. Newsweek reports that this significant decline was triggered by a SHIB whale deciding to offload 40 trillion worth of tokens, a holding with roughly $2.8 billion in U.S. dollars at the time of the sale. Today has brought the steepest declines yet, with SHIB prices down by 22% as of this writing. Moving in sympathy, Dogecoin has declined by more than 4% while Floki prices are down by more than 8%.
As anyone who has been following the pupcoin frenzy knows, the token is powered by its digital following, known online as the SHIB army.
While the strength and unity of this community is much of what has powered the token’s rise, days like this are a reminder of what can happen when momentum shifts.
Why It Matters
While the whale’s motivation for offloading so much Shiba is unclear, it doesn’t have to be for prices to quickly react. CoinDesk was told by a crypto market research firm that there had been an increase in Shiba selloffs, as indicated by the token’s flows to centralized exchanges — specifically 1.36 trillion more than had been seen during the previous day. While this was going on, the amount of deposit addresses spiked by 142% since markets opened at the start of the trading week. The end of October brought the peak in the token’s interactions with unique addresses at 107,000. Since then, the number has fallen by 66%.
These trends are likely indicative of an increase in short-term selling pressure as SHIB prices continue to decline and the token increases in availability across exchanges. The underlying message is clear: The hype that has carried the token to the record-setting highs only a week ago has clearly diminished and with it, SHIB prices.
What’s Next for the Pack?
This recent selloff isn’t the only problem that Shiba has faced recently. The Shiba army recently expressed frustration when the Kraken exchange failed to list the token on its platform, despite a promise that it would if a post generated enough social media interaction.
👇 👇 👇
💬 🔁 ♥️
— Kraken Exchange (@krakenfx) November 1, 2021
Even if it had gained this listing, the whale offloading their holdings recently would still have triggered the current selloff, at least in some capacity. This doesn’t mean that the pupcoin frenzy is over, but it will certainly test the power of the SHIB army. Meme investors love to buy the dip, and SHIB prices are certainly dipping right now. Recent price predictions have been high in some cases.
Everyone should be watching as the puppy pack heads into next week.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.