Impact of Selling 100 Billion SHIB Tokens on Price Movement
During the past month, Shiba Inu [SHIB] has been on a consistent upward trajectory, witnessing significant gains on its price charts.
These positive strides have propelled SHIB to reclaim levels last seen in March, marking a 9-month high. The surge in prices translates to increased profitability, especially for those holding onto their investments for the long term.
Consequently, many early backers have seized the opportunity to capitalize on their gains.
Significant Sale of 100 billion SHIB by a Major Whale
Reports from Lookonchain indicate that a prominent Shiba Inu whale has recently divested 100 billion SHIB tokens, valued at $2.85 million.
Interestingly, this whale initially acquired 15.28 trillion SHIB tokens back in August 2020, spending $3.8k. Following the recent transaction, the whale still retains 2.5 trillion tokens, currently valued at $75.2 million.
Although market norms suggest a potential price drop when a large whale sells off, it appears that this particular sale has been absorbed by other whales actively accumulating SHIB amidst growing retail and shark activity.
Evidence supporting this can be seen in the increased whale activity within the Shiba Inu ecosystem, hitting a monthly peak. Notably, substantial transactions have surged to reclaim levels last seen in August, jumping from 45 transactions to 1.12k within three months.
Thus, whales are not only accumulating but also reinforcing the fundamental strength of this memecoin.
Additionally, retail traders and sharks are displaying heightened activity in the market. This is exemplified by the escalating number of active addresses, which have notably spiked to reach a peak not witnessed since March 2024.
As per data from CryptoQuant, active addresses for Shiba Inu currently stand at 16.5k, marking a noteworthy resurgence.
An Analysis of Price Trends
While a whale offloading such a substantial amount of tokens often has a significant impact on any crypto’s price dynamics, in this case, the sale was likely aimed at capitalizing on the recent market surge.
The ongoing price rally is creating opportunities for profit-taking. This is corroborated by the rising MVRV long/short difference, which has surged to 3.55% over the past week.
This trend indicates that while most long-term holders are currently in profit, they also maintain optimism regarding the future value of the memecoin.
Consequently, the recent whale transaction has not yet exerted any negative influence on the price trends of SHIB; on the contrary, the token’s value is on an upward trajectory.
As of now, Shiba Inu is trading at $0.00002893, marking a 16.34% surge within a 24-hour period. Furthermore, the memecoin has exhibited significant gains of 63.84% and 62.78% on weekly and monthly charts respectively.
These figures demonstrate a robust bullish momentum for SHIB amidst favorable market conditions. With increasing whale activity and a growing number of active addresses, Shiba Inu appears poised for further price appreciation.
If the current market conditions persist, SHIB could potentially reach the $0.00003 mark in the near future.