In a significant move amid the fluctuating Shiba Inu (SHIB) prices, whales have recently accumulated over half a trillion SHIB tokens.
According to a tweet by Lookonchain on July 3, a newly activated wallet made significant withdrawals from Binance on Wednesday, totaling over $120 million across fourteen different assets. The withdrawals included 40.7 million USDT, 957.77 billion PEPE (worth around $9.84 million), and 583.78 billion SHIB tokens, equivalent to roughly $9.68 million, among other assets.
The timing of this substantial SHIB acquisition is noteworthy, as it coincides with a recent dip in SHIB’s value. This decline allowed the whale to secure the tokens at a more favorable price compared to purchasing them about two months ago.
This recent transaction is part of a broader trend observed over the past month, where substantial withdrawals from exchanges have been recorded. Earlier last month, nine wallets collectively spent $35.2 million to acquire 1.356 trillion SHIB at an average price of $0.00002596.
CryptoQuant’s SHIB Exchange Netflow metric further highlights the growing demand for SHIB among large investors. Since June 1, there have been only seven days with positive net flows, compared to 26 days with negative net flows, leading to a net outflow of 7.823 trillion SHIB. This represents the most significant cluster of exchange net outflows since January, indicating a deliberate effort by investors to withdraw their SHIB holdings from exchanges.
Additionally, crypto analytics firm Santiment categorizes SHIB as “underbought,” suggesting it could attract more buyers as gazes fixate on the highly coveted $0.001 SHIB price. This assessment is based on the MVRV Z-Score, which identifies overvalued and undervalued assets based on average trader returns. As of a June 29 post, top caps like Toncoin, Bitcoin, and Ethereum were deemed overbought, while Shiba Inu and Uniswap were considered underbought.
Data from IntoTheBlock supports this optimistic outlook. It reveals a significant increase in the number of wallets holding SHIB for over a year. As of July 5, 2024, there are approximately 1.02 million such addresses, up from around 270,000 on the same day last year. This surge indicates growing confidence among long-term investors.
Meanwhile, despite these positive indicators, SHIB has faced a downward trend this week, exacerbated by broader market volatility and increased selling pressure led by Bitcoin. However, analysts suggest that this downtrend could be temporary. On Thursday, Shiba Inu marketing lead “LUCIE” reassured the community, urging them to focus on the long term.
“These declines and bearish days are not failures or reasons to quit. They are completely irrelevant to long-term investors, and for short-term investors, it will just take longer to get there, but nothing changes,” she tweeted.
SHIB traded at $0.00001577 at press time, marking a 13% upsurge over the past 24 hours. According to CoinMarketCap data, the buying volume for the meme coin on centralized exchanges surged by 78.31% during the same period, reaching approximately $360 million.