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Meme coins surged throughout the week alongside the wider market, prompting expected retail reactions. Dogecoin (DOGE) and Shiba Inu (SHIB) traders moved a significant portion of holdings to exchanges, doubling down on profit-taking after recent gains.
Is A Selloff On The Cards?
Shiba Inu traders are reporting early signs of panic following market upticks across meme coins. Assets on Binance alone hit 61.8 trillion tokens, a significant jump since March.
The second quarter has seen a bounce in flows to centralized exchanges linked to the market performance. Crypto prices generally struggled in the first three months, with assets like Bitcoin (BTC) sliding 35%. Meme coins were also hit following massive liquidations to hedge losses.
The recent trend is an aftermath of perceived stability in global market conditions due to the US-Iran negotiations. Meme coins grew stronger with Bitcoin and stocks, leaving traders expecting the obvious: profit-taking.
Unlike top assets, where short-term holders dominate profit taking, meme coin whales are known to offload tokens after long periods of losses. This usually happens to cover losses at the early stages of investor confidence before a reversal.
 
Though all the major transfers to Binance and other centralized exchanges have not yet culminated in a final sale, traders are already pointing in that direction. Movements to exchanges often lead to imminent sales, rather than long-term holdings in self-custody wallets.
CryptoQuant analysts also linked fund flows to impending profit taking into consideration previous trader behavior. On the flip side, Bitcoin and Ethereum bulls are looking stronger, with outflows from exchanges pointing to long-term stability.
“While the SHIB price has shown volatility and occasional upward spikes during this period, the sheer volume of tokens accumulating on Binance could act as a strong overhead resistance against future bullish rallies. Traders should exercise strict risk management…”
SHIB is up 3.5% today, consolidating weekly gains. However, the monthly surge has slowed over the last two weeks as traders evaluate whales’ leanings. DOGE also moved in a similar pattern, trading at $0.10, a 4.12% jump today.
The wider meme coin market stands at $37.7 billion, while trading volumes dropped below $4.1 billion. Despite inflows into exchanges, bulls still expect meme coins to ride the Bitcoin pattern in the coming weeks.