Due to the impact of the price war, whales are massively selling off Shiba Inu (SHIB). A prominent investor sold 250 billion SHIB for about $605 million, stemming from their strategy of purchasing it for $3,800 in 2020. Despite the sale, the whale still holds approximately 2.15 trillion SHIB, worth about $52.18 million, with total profits reaching $109 million. Recently, SHIB's price fell by 6% due to market volatility, with its market cap dropping to $14.36 billion, while trading volume increased by 80.15%, reflecting heightened market activity. Technical analysis indicates that SHIB may face further downward pressure.
Due to the price war, whales are selling off large amounts of Shiba Inu coins. A prominent investor sold 250 billion SHIB, approximately $605 million.
However, this trade is part of a grand strategy that began on August 6, 2020, when investors purchased meme coins for only $3,800.
Despite the volatility in the cryptocurrency market, whales increased their holdings by a total of $1.22 billion when the market peaked.
A whale sold 250 billion $SHIB ($605 million) in the past hour to realize profits.
The whale spent $3.8K to purchase 15.28 trillion $SHIB (peaking at $1.22 billion) back on August 6, 2020.
This whale currently holds 2.15 trillion $SHIB ($52.18 million), with total profits on $SHIB amounting to $1.09 million. https://t.co/BWxcnWuwFR pic.twitter.com/aQZFPyhYSv
— Lookonchain (@lookonchain) December 19, 2024
Despite the mass sale of Shiba, whales still retain a considerable amount of Shiba in their portfolios.
Currently, they hold approximately 2.15 trillion SHIB, worth about $52.18 million. Their SHIB trades have brought in a total profit of $109 million.
What is the price of Shiba Inu coin?
Recently, due to technical analysis predicting volatility within 2025, Shiba Inu (SHIB) seems to be in a predicament, dropping 6% within a day.
Meanwhile, as we approach 2025, the price of Shiba Inu coins may reach a critical long-term breakout point at the 50% Fibonacci level.
SHIB may reach this point and use it as a critical moment for a significant price increase toward a bullish target.
This candlestick chart depicts Shiba Inu (SHIB) experiencing a sharp decline during a 24-hour trading period, followed by a recovery phase.
SHIB opened at a high price but soon faced a significant sell-off, causing the price to drop rapidly.
However, the rebound after hitting a low suggests that there is some buying interest at lower levels.
SHIB/USDT 1-week candlestick chart | Source: InvestingHaven
Analysis of the impact of whale trading on the X market
The SHIB market is already feeling the impact of this massive sell-off immediately. The price of Shiba Inu dropped significantly by 6% within a day.
Its market capitalization has fallen to $14.36 billion, only 5.95%. However, trading volume increased by 80.15%, indicating that the market has become busier. This could be the reason why whales are acting this way.
Increased activity across various fronts may be due to other investors being spooked by the price drop and selling their shares to avoid further losses.
Meanwhile, other investors are also taking advantage of the price opportunities that differ from the current situation.
Technical analysis of the Shiba Inu market shows a downward price trend contained within a descending channel. Two parallel downward-sloping lines illustrate this.
The recent price has touched the lower limit of the descending channel, which may become a support level.
A rebound from this level may lead to attempts to break through the upper limit of the channel. Conversely, a drop below may signal the continuation of a bearish trend.
4-hour SHIB/USD candlestick chart | Source: TradingView
The current value of the average directional index (ADX) in the candlestick chart is around 40.18, which is relatively high and usually indicates a strong trend.
In this context, it emphasizes the strength of the current downtrend in Shiba Inu prices. If SHIB continues to follow the descending channel pattern, traders may expect continued bearish behavior until a decisive breakout occurs.
The important ADX value should keep traders cautious, as it indicates that trends, whether upward or downward after a breakout, may exhibit strong momentum.
