Shiba Inu Price Plummets 20% as Bears Intercept Weekend Rally

Shiba Inu's price surge over the weekend has come to an end as it dropped nearly 20% from its recent high. This decline comes after a 35% price jump just a few days ago, reaching a two-month high of around $0.00000582 per CoinGecko.

The rally was attributed to several factors, including a whale that resumed accumulating SHIB after over half a year of inactivity and the resurgence of the burning mechanism. However, the bulls lost momentum, and SHIB currently trades at roughly $0.000004631.

Santiment noted that during the rally, there were 52 whale transactions in a single day, the most since March 31. The analytics platform added that 'Activity strongly suggests larger holders took profits into strength,' and retail investors joined the party too late, giving whales the liquidity needed to reduce their exposure.

According to Santiment, the smart approach with meme coins is to cash out when retail FOMO spikes and re-enter once the crowd turns hostile. The rising amount of tokens stored on exchanges also serves as a warning, suggesting many investors have abandoned self-custody and flocked to centralized platforms, thus increasing immediate selling pressure.