Shiba Inu, the second-largest memecoin commanding a market capitalization of approximately $20 billion, has experienced a notable 17% decline in price since yesterday.
This sudden downturn comes after a period of strong performance, signaling a potential return to the hiking zone.
The price retracement of SHIB, while unexpected, could be attributed to various factors such as profit-taking by large holders or panic selling among investors. This price volatility underscores the inherent unpredictability of the cryptocurrency market.
Recent on-chain reports shed light on the activities of Rune, co-founder of MakerDAO, whose transactions have influenced the market dynamics. Rune capitalized on the price movements by selling SHIB for profit and reallocating funds into Maker (MKR) tokens.
He purchased 619 MKR tokens worth $1.3 million at a price of $2,100 per token. This strategic maneuver reflects Rune’s adeptness at navigating the crypto landscape to maximize returns.
Rune(@RuneKek, co-founder of #Maker) sold $SHIB for profit and bought 619 $MKR($1.3M) at $2,100 10 hrs ago!
He spent 500K $USDC to buy 25B $SHIB on Mar 1 and Mar 4, then sold 8M $SHIB for 245.5K $USDC, with 17B $SHIB($531K) left, making ~$275K.https://t.co/pySiO1GApD pic.twitter.com/ELzWR7s6Kh
— Lookonchain (@lookonchain) March 6, 2024
An Insight Into Rune’s Broader Market Transactions
Rune’s earlier transactions involved the acquisition of 25 billion SHIB tokens using $USDC on March 1 and March 4. Subsequently, he sold 8 million SHIB tokens for 245.5K $USDC, retaining 17 billion SHIB tokens valued at $531K.
These transactions resulted in a profit of approximately $275K for Rune, highlighting the potential gains to be made in the cryptocurrency market.
Meanwhile, the broader market sentiment has also influenced the price movement of MKR, which experienced a 5% decline over the past seven days. This downward trend reflects the overall market volatility and the interconnectedness of various digital assets.
As investors navigate the fluctuations in the cryptocurrency market, monitoring key indicators and staying informed about market developments becomes imperative.
The recent price decline in Shiba Inu serves as a reminder of the inherent risks associated with investing in digital assets, underscoring the importance of strategic decision-making and risk management in navigating the dynamic crypto landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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