The meme currency craze has taken the crypto world by surprise in the last week, with prominent players such as Dogecoin (DOGE) and Shiba Inu (SHIB) reporting spectacular increases of 100% and 180%, respectively. In what may be called “meme coin week” in the crypto world, such spectacular gains frequently result in profit-taking by both investors and whales.
As expected, one such profit-taking incident occurred only a few hours ago, according to SpotOnChain, an on-chain analytics company.
Particularly, the identical whale purchased these SHIB tokens from Coinbase on February 22, 2024, for an average cost of $0.000009593 (estimated cost: $2 million). By selling the tokens currently, the whale has generated a profit of $3.61 million, representing an amazing 180% gain in just 11 days.
Profit-taking is predicted in such scenarios following big pumps. Meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have seen spectacular rises of 100% and 190%, respectively, over the last week. As a result, it is normal for some whales and investors to take profits, causing a brief downturn.
In the instance of SHIB, the price of the token has dropped 5% in the last hour, trading around $0.000025 after reaching a high of $0.00002687 earlier. Such swings in prices is normal in the meme currency arena, and investors should use prudence and risk management when dealing with these highly speculative assets.
While the recent spike in meme coins has been impressive, it is important to remember that these financial instruments are driven mostly by excitement and speculation, rather than underlying fundamentals. As a result, they are subject to large price volatility, and investors should carefully examine their risk tolerance before devoting cash to these assets.
Release: The purpose of this content is only to provide knowledge. Readers have to do their own research before making investment decisions.
