Shiba Inu whale holds $2.5B in tokens
On-chain data reveals that an unidentified investor owns over 10% of Shiba Inu's (CRYPTO:SHIB) total token supply, raising concerns about the cryptocurrency's distribution.
According to blockchain analysis firm Bubblemaps, the whale's holdings, spread across 150 addresses, were acquired for just 38 ETH (approximately $10,000 in 2020) and are now valued at over $2.5 billion.
"Between August and October 2020, a new player entered the scene: 0x1406 purchased 103T $SHIB (10% of the supply) for just 38 ETH. Today, 103T $SHIB is worth over $2.5 billion," noted Bubblemaps in a November 19 post.
Despite this extraordinary 250,000-fold return, the investor has held onto their SHIB holdings since the initial investment, suggesting confidence in the token's future.
The presence of such whales often raises concerns about market stability.
If the investor were to sell a significant portion, it could exert substantial downward pressure on SHIB’s price.
Shiba Inu has performed strongly this year, rising over 134% year-to-date and 27% in the past month.
Analysts see SHIB as a "sleeping giant" in this bull cycle, with technical patterns like a cup-and-handle formation indicating a potential breakout.
Market dynamics could also favor Shiba Inu as capital shifts from Dogecoin (CRYPTO:DOGE).
The relative strength index (RSI) for SHIB against DOGE indicates oversold conditions, suggesting reduced selling pressure and potential for price recovery compared to its rival.
While Shiba Inu trails Dogecoin in popularity, particularly due to Elon Musk’s influence on DOGE, analysts speculate SHIB could benefit from increased market rotation and bullish technical signals in the months ahead.
At the time of reporting, the Shiba Inu (SHIB) price was $0.00002357.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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