Crypto Markets Lower as Investors Take Profits Amid Inflation Report

The crypto market is currently undergoing a shake-up as investors flee the market ahead of the next US inflation report. At the time of writing, Bitcointhe largest digital asset, fell 3.41% to US$67,231, while Ethereum also fell 5% to trade at $3,486.

While renewed selling pressure suggests a prolonged correction for major altcoins, the memecoin sector has been hit particularly hard. Shiba Inu (SHIB), the second largest meme coin by market cap, was not spared

SHIB Price Falls as Whales Take Profits

Earlier today, data from Data Nerd showed that 10 major SHIB wallets deposited a whopping 4.29 trillion SHIB tokens (worth around $97.33 million) to the Coinbase exchange over the past day. These whales accumulated their SHIB holdings in September 2021 and March 2024 at an average price of $0.00001309.

With SHIB currently trading at $0.0000215, these investors are likely to cash out a decent profit of $41.22 million. This elevated selling pressure on SHIB worsened its decline, resulting in it losing almost a quarter in one day, while its market capitalization fell to around 12.6 billion. dollars.

Can SHIB regain its position?

Despite heavy selling, SHIB still holds above key support at $0.0000206, which coincides with a 61.8% Fibonacci retracement level. If buyers can defend this level, they could regain control and achieve a 53% rally to $0.000045.

However, a breakdown below $0.0000206 could open the floodgates for another deep sell-off for the meme coin. Market sentiment remains fragile ahead of this week’s crucial US inflation data.

Current rate of Shiba Inu according to CoinMarketCap

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