Meme coin prices have taken a hit alongside the broader crypto market in the last 48 hours. Shiba Inu (SHIB), the second-largest meme coin by market capitalization, saw a 3% drop in the last 24 hours as the selloff intensified. Other meme tokens also experienced losses, reflecting the overall negative sentiment in the market.
Whales have been offloading significant amounts of SHIB tokens, pushing the asset further into the red zone. A crypto whale recently sold 250 billion SHIB tokens, worth around $6 million, in an attempt to secure profits before further decline. This comes after the same whale had made a profitable purchase of 15.28 trillion SHIB for $3.8K in August 2020, resulting in an impressive $109 million profit.
The recent sell-off activity by whales has caused concern among the community, with 43 billion tokens being transferred to an unknown wallet on Dec 16. Meme coins are known for their high volatility due to their prices and market structure, making them susceptible to drastic price swings. However, despite the current downturn, SHIB bulls are hopeful for a potential rally in the near future, especially with the involvement of U.S. institutional investors who could drive the next upward momentum.
Market sentiment is expected to improve as regulatory uncertainties in the U.S. may ease, prompting institutional investors to reposition their assets. Crypto enthusiasts and analysts are optimistic about a turnaround in the meme coin space, with projected price targets for Shiba Inu in 2025 ranging from $0.0000234 to $0.0000998. The possibility of an altcoin season, where funds flow from Bitcoin to other assets, is also on the horizon as whales reallocate their investments. However, volatility remains a key concern amid recent outflows and wavering sentiments in the market.
