SHIB’s Upward Potential May Be Hindered by Drowning Whales

On-chain data indicates that the majority of SHIB whales are underwater, which may prevent SHIB's price from rising.

In the ever-evolving world of cryptocurrency, a recent event has captivated the global cryptocurrency community. Over the past few days, billions of Shiba Inu (SHIB) tokens were transferred, sparking curiosity and speculation throughout the entire cryptocurrency space. The sender, identified only by the address 0x3816E8dA90D52CBf16a9891a842796311Fa59c8F, holds a mere $1 worth of assets but has connections to prominent platforms like Coinbase Prime and Balancer. Meanwhile, the recipient in the transaction boasts a $3 million balance exclusively in SHIB, with no history of interaction with cryptocurrency exchanges. This massive transfer has left the community pondering its motives and the potential impact on the cryptocurrency market, underlining the ever-intriguing nature of the cryptocurrency world.

Meanwhile, technical indicators suggested that momentum may be gradually shifting in favor of buyers. Despite this, however, on-chain data shows that more than 80% of SHIB whales are currently at a loss. Therefore, any potential increases in the meme coin’s price may be met with near-immediate profit-taking activity - resulting in SHIB’s price declining.

Whale Sends Billions of Tokens

A recent event has left the community buzzing with intrigue. Over the past few days, an astonishing 420 billion Shiba Inu (SHIB) tokens were transferred, and the story behind this massive transaction is nothing short of captivating.

The sender, identified by the address 0x3816E8dA90D52CBf16a9891a842796311Fa59c8F, is shrouded in mystery. Despite currently holding a meager $1 worth of assets, this address has previously received funds from notable platforms like Coinbase Prime and Balancer. In addition to these well-known sources, it has also received funds from two unidentified addresses, deepening the enigma surrounding this cryptocurrency player. The sender's previous interactions with these prominent cryptocurrency platforms suggest a level of sophistication that piques the curiosity of onlookers, hinting at a history that remains concealed.

On the other side of the transaction, we have the receiver, an address that holds a staggering balance of $3 million, exclusively in Shiba Inu tokens. What is most intriguing about this recipient is its complete absence of interaction with any cryptocurrency exchanges. This enigmatic characteristic adds an extra layer of mystery to an already baffling transaction.

So, what could be the motive behind this colossal transfer? Several theories have emerged within the cryptocurrency community. One possibility is that it represents a redistribution of holdings among retail whales. The sender's history of transactions with reputable platforms implies a degree of financial sophistication, which aligns with the notion of a strategic asset reshuffling.

On the other hand, the receiver's exclusive Shiba Inu portfolio raises more questions than answers. Is this a dedicated long-term investor who has unwavering faith in SHIB, or could there be a more clandestine motive at play?

The fact that the address has not interacted with any exchanges leaves room for speculation. Could this be a move to consolidate assets for the long term, or might it be a preparatory step for a larger, undisclosed plan? These questions swirl around the cryptocurrency community, fueling speculation about the true nature of this transaction.

One thing is certain: large transactions like this one can have a profound impact on the cryptocurrency market. They can trigger a cascade of emotions, from fear of missing out (FOMO) to concerns of a looming sell-off. Whether this massive transfer will drive up demand for SHIB or lead to a dip in its price remains to be seen, but it has unquestionably captured the attention of cryptocurrency enthusiasts worldwide.

In the ever-unpredictable world of cryptocurrencies, where fortunes can be made and lost in the blink of an eye, events like this serve as a potent reminder that the market's movements are never dull. The cryptoverse is constantly evolving, and transactions like the one involving 420 billion SHIB tokens only add to its allure.

As the cryptocurrency community watches and waits to see the ripple effect of this enormous transfer on Shiba Inu's price as well as the broader cryptocurrency market, one thing is clear: in the world of digital currencies, even the most seemingly mundane transactions can become a source of fascination, speculation, and wonder. The cryptocurrency community, ever vigilant, eagerly anticipates the next twist in this captivating saga, eager to uncover the hidden motives and implications behind this unprecedented move.

SHIB’s Uptrend Limited by Drowning Whales

Meanwhile, the price of SHIB has been on a rollercoaster ride recently, with a sharp 10% decline that began in late August. However, the meme coin has since found support and is showing signs of a potential uptrend. Nevertheless, this upward movement is met with formidable opposition from a multitude of addresses eager to close their positions to prevent further losses.

In the last three days, SHIB’s price has experienced a bullish surge, marking a nearly 5% increase. The Relative Strength Index (RSI), a popular momentum indicator, was reflecting growing optimism among investors. If this positive momentum continues, SHIB could potentially stage an 8% recovery, challenging the initial hurdle at $0.00000828, which is marked by the 50-day Exponential Moving Average (EMA).

Daily chart for SHIB/USDT (Source: TradingView)

In a highly bullish scenario, Shiba Inu's price may manage to surpass this resistance and reach the next level at $0.00000879 before encountering a more significant barrier: the resistance confluence formed by a horizontal line and the 200-day EMA at $0.00000908. Such a move would represent an impressive 20% climb from its current levels.

While the prospect of SHIB's ascent appears promising, it is crucial to consider the overwhelming overhead selling pressure. According to the on-chain metric known as Global In/Out of the Money (GIOM), sourced from the cryptocurrency intelligence tracker IntoTheBlock, a substantial 93.65% of SHIB addresses currently find themselves in a losing position (out of the money). Only a mere 3.52% are currently in the green (in the money), while 2.84% are at the break-even point.

With the majority of addresses currently experiencing losses, two potential scenarios emerge. Some holders may choose to exit the market once they break even, while others might adopt a more patient approach, affording Shiba Inu price the opportunity to recover.

Notably, data from Santiment reveals significant increases in active deposits and exchange inflow metrics, often indicative of an intention to sell. When cryptocurrency holders move their assets to exchanges, it is typically a sign of readiness to liquidate them for cash or explore better trading prospects.

The resulting selling pressure from the large number of addresses, totaling a staggering 920.02 trillion (or a portion thereof), seeking to minimize their losses, could potentially drive SHIB’s price lower, potentially retracing to the support level at $0.00000718. In a more pessimistic scenario, SHIB might even extend its decline to the demand zone around $0.00000687. It is within this zone that buying pressure is anticipated, and another attempt at an upward move could materialize.

Price Overview

At press time, the cryptocurrency price tracking website CoinStats indicated that the meme coin was changing hands at $0.000007560. This was after SHIB’s price slipped 0.42% throughout the past 24 hours - pushing the cryptocurrency’s weekly performance further into the red zone to -5.06%.

Price chart for SHIB (Source: CoinStats)

The altcoin was able to reach a 24-hour high of $0.00000771, but had since retraced to trade at its current level. Consequently, SHIB was trading much closer to its daily low of $0.00000752 at press time.

Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.