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The recent sale of 100 billion Shiba Inu (SHIB) tokens by a dormant whale marks a significant event in the memecoin landscape, sparking a 16.34% price surge.
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Despite the hefty offloading, SHIB continues to gain traction, appreciating by 63.8% on weekly charts.
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According to data from Lookonchain, this whale, who originally purchased the tokens in 2020, still holds a substantial 2.5 trillion SHIB tokens, valued at $75.2 million.
This article explores the recent whale activity in Shiba Inu, detailing a significant token sale that has not dampened the memecoin’s bullish momentum.
Whale offloads 100 billion SHIB Tokens
According to Lookonchain, a strategic decision was made by a prominent Shiba Inu whale who sold off a staggering 100 billion SHIB tokens, translating to approximately $2.85 million. This transaction is particularly noteworthy as it contrasts the common expectations of market downturns following a whale’s sell-off.
Source: Lookonchain
This whale, who initially invested around $3,800 in August 2020 for a massive quantity of 15.28 trillion tokens, still maintains a significant holding. Currently, they possess 2.5 trillion tokens, which are worth approximately $75.2 million as of now. Despite the large sale, the market has shown resilience, absorbing the offloaded tokens without a significant drop.
In fact, whale transactions have noticeably increased, with Shiba Inu’s whale activity reaching a monthly high. Recent data indicates that large transaction volumes have surged to levels unseen since August, rising from only 45 transactions three months ago to 1,120 transactions currently.
Source: IntoTheBlock
This uptick in large transactions signifies a robust demand for SHIB among other whales, further fortifying the currency’s standing in the crypto market.
Source: CryptoQuant
Retail traders have also been notably active, pushing Shiba Inu’s active addresses to a nine-month high. Current metrics reveal approximately 16,500 active addresses, marking a significant increase from earlier months.
Market Analysis: Price Charts and Trends
The impact of large-scale sell-offs on cryptocurrency prices can be significant, yet in this instance, the market appears to have absorbed the decline efficiently. Observations indicate that this whale’s transaction was likely executed to capitalize on the recent gains observed in Shiba Inu’s price.
This price rally has surfaced an opportunity for profit-taking, highlighted by an increasing MVRV (Market Value to Realized Value) long/short difference, which has surged to 3.55% over the past week. This metric suggests that the majority of long-term holders are not only in profit but are also positioning themselves confidently for the future.
Source: Santiment
Thus far, this massive sell-off has not detracted from SHIB’s upward momentum. As of the latest data, Shiba Inu was trading at $0.00002893, reflecting a steady increase of 16.34% over a 24-hour period. Over the past week, the memecoin has gained 63.84%, along with a significant 62.78% increase for the month.
This strong bullish momentum indicates positive market conditions, buoyed by heightened whale activity and increasing retail investor interest, all of which create a conducive environment for future price appreciation.
Conclusion
The recent offloading by a major SHIB whale, while historically seen as a bearish indicator, has instead coincided with a robust rise in the memecoin’s value and trading activity. The resilience of Shiba Inu in the face of such a significant sell-off underscores its strengthening fundamentals and increasing investor confidence. With current market dynamics fostering active engagement and potential price appreciation, SHIB may soon aim for a new threshold of $0.00003 if these trends continue.
