The meme coin frenzy has taken the crypto world by storm over the past week, with major players like Dogecoin (DOGE) and Shiba Inu (SHIB) recording astronomical gains of 100% and 180%, respectively. In what could be deemed the “meme coin week” in the crypto space, such astronomical rallies often lead to profit-taking by investors and whales alike.
True to expectations, one such profit-taking event occurred just a few hours ago, as reported by SpotOnChain, an on-chain analytics platform.
According to SpotOnChain, a crypto whale with the address 0xd4b726015cf59e954f3c5b0ba87ab7ef68a33f58 recently deposited 209.23 billion SHIB tokens (worth $5.6 million) to Coinbase at an average price of $0.00002687 per SHIB. The transaction hash is 0x7faa9b3bfc4fd206d3d081529b45937d999b7a8af9bc05e51030e182d775a403.
Notably, the same whale had accumulated these SHIB tokens from Coinbase on February 22, 2024, at an average cost of $0.000009593 (estimated cost: $2 million). By selling the tokens now, the whale has made a profit of $3.61 million, which translates to an incredible 180% gain in just 11 days.
Profit-taking is expected in such situations after massive pumps. Meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) witnessed astronomical gains of 100% and 190%, respectively, over the past week. Consequently, it is natural for some whales and investors to book profits, leading to a temporary pullback.
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Show more +In the case of SHIB, the token is now down 5% in the last hour, trading around $0.000025 after hitting a high of $0.00002687 earlier. Such price volatility is common in the meme coin space, and investors should exercise caution and practice risk management when dealing with these highly speculative assets.
While the recent surge in meme coins has been remarkable, it is crucial to remember that these assets are primarily driven by hype and speculation, rather than underlying fundamentals. As a result, they are prone to significant price swings, and investors should carefully consider their risk tolerance before allocating funds to these assets.
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