Shiba Inu Whale Deposits 370B SHIB Into Exchanges Amid Growing Scrutiny in Memecoin Protocols

The memecoin market has been quiet recently, with speculation declining sharply amid a bearish market. Despite this silence, the sector woke up in the last 24 hours, surging about 3% alongside the daily trading volume.

This weakness alongside the increasing scrutiny of insider trading in the memecoin sector has prompted some whales to act. Some are reducing their market risk by trimming their positions.

While the price action is reacting anomalously to these bearish signals, it hints that the upward move could be a fakeout. A deeper analysis of the price action will likely clear the potential direction bias.

Whale Deposits 370B SHIB Into Exchanges: Potential Selling?

As per data from Arkham Intelligence, a whale moved about 370 billion SHIB tokens from an external address to the Biget and Binance exchanges. The transaction indicated that the largest position in this multiple movement of the token was worth approximately 203.53 billion SHIB tokens, valued at $1.2 million.

What was exciting about the whale’s activity was the fact that they left about 371 billion SHIB tokens unmoved. This meant the transfer was intended to reduce their risk exposure while remaining fairly optimistic. The split was almost equal, suggesting the whale was impartial in its potential market direction.

Apart from this transfer, the trader also moved Ethereum (ETH) and Pepe (PEPE), though their positions were smaller. Such an activity meant that the whale was preparing to withdraw their capital from the memecoin’s market. The withdrawal would put downward pressure on SHIB, which in turn would push its price down if this capital were not replaced.

However, the market had not yet factored this move in, likely because the whale failed to offload. This was evident from the current price action.

Shiba Inu Price Prediction: SHIB Rallies Amid Memecoin Resurgence

On the charts, the memecoin was surging, with the daily gains hitting over 7% at press time. This return was higher than that of the memecoin sector and the entire crypto market.

Shiba Inu price rose from a low of around $0.00000580 to about $0.00000639. However, SHIB was struggling to break past the $0.00000639 zone, which would open the path toward $0.00000653, the most recent lower low. Only flipping this lower low would shift the market structure on the 4-hour chart.

Other levels that SHIB could revisit in case of a shift were between $0.00000669 and $0.00000727. The $0.00000727 level was the peak of the range in which the SHIB price traded.

Otherwise, failure to breach the lower low would mean that the memecoins remain in a bear setup. This was especially true if the whale moved the SHIB tokens to exchanges after offloading them. Such an event would reverse the current strength seen in SHIB, which is outperforming other memecoins.

Memecoin Companies Accused of Insider Trading: Impact on Memecoins

Additionally, the memecoin sector faced scrutiny following accusations by ZachXBT that some protocols were engaging in insider trading. In fact, the traders were betting massively on Polymarket, which the on-chain analyst would expose.

The most recent data showed that Meteora was ahead, with odds above 43%, while Axiom and Pumpfun (PUMP) had odds below 20%. Meteora launched TRUMP, LIBRA, and MELANIA memecoins, leading to accusations of insider trading. In fact, some wallets bought TRUMP just before it debuted.

This put the whole sector at risk of collapse, especially the platform that was involved. This probably also triggered the SHIB whale to offload, fearing a broader crash upon release of the exposé.