Shiba Inu, like the rest of the cryptocurrency market, has experienced significant volatility over the past few days.
The meme coin is currently down 3.6% for the week and is trading at $0.00001734. SHIB hit new lows after its latest decline. This confirmed the continued negative sentiment, with the most likely support located at $0.000014.
Whale tracking has always been a way to gauge future market movements.
Whale addresses are such that they hold a significant amount of tokens, and are often able to influence the market not only by objectively making trades, but also by moving tokens as traders react in anticipation.
Data from Spot on Chain shows that one whale with an address ending in 0x42a transferred a whopping SHIB worth 1.088 trillion. That's about $18 million at current prices.
According to the analytics provider, whale has been accumulating SHIB since the market crash in November and December 2023 and is currently generating an estimated profit of about $8 million. This represents a 79% increase for the investor.
It is impossible to determine whether the whale decided to realize its profit or not.
However, a transaction in which tokens are transferred from an OTC vault to a trading platform usually indicates intent to sell.
However, it is also worth noting that the current market depth of SHIB, as calculated by CoinMarketCap, would require a market sale of $1 million worth of tokens to reduce the price on Binance by 2%.
Meanwhile, SHIB is trading up 4.4% in the last 24 hours, recouping some of the losses seen over the past few days.
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