On-chain data has revealed that an unknown large investor holds over 10% of the Shiba Inu token supply, raising new concerns about the distribution of the second largest meme coin in the world.
A mysterious Shiba Inu (SHIB) whale owns over 10% of the total token supply through 150 different addresses.
Although the value of these holdings once peaked at over 5 billion USD, this whale has continued to hold onto its SHIB since 2020, according to a post on November 19 on X by blockchain data company Bubblemaps, stating that:
‘Between mid-August and October 2020, a new player emerged: 0x1406 bought 103 trillion SHIB (10% of supply) for just 38 ETH. At that time, 38 ETH was worth 10K USD. Now, 103 trillion SHIB is worth over 2.5 billion USD.’
Shiba Inu whales. Source: Bubblemaps
Since October 2020, this investor has realized profits over 250,000 times their initial investment of just 10K USD, worth more than 2.5 billion USD today, which Bubblemaps describes as 'potentially the greatest trade in history.'
Whales with large holdings can significantly impact the price volatility of a cryptocurrency. If whales decide to sell a significant portion of their SHIB on the open market, it could create strong downward pressure.
Shiba Inu could be a sleeping giant in this growth cycle
Despite achieving profits over 250,000 times, investors have chosen not to sell any of their SHIB, showing confidence in the future potential of this meme coin.
Data from TinTucBitcoin shows that Shiba Inu is currently up over 134% since the beginning of the year and over 27% in the past month.
SHIB/USD chart, 1 year. Source: TinTucBitcoin
Although this token has not shown strength like some other top meme coins, market predictions suggest that Shiba Inu could be a sleeping giant in this cycle.
The first major signal for a SHIB price explosion comes from the formation of a continuous cup and handle pattern. This bullish chart pattern often resolves with a breakout, with the price target calculated by adding the maximum height of the pattern to the breakout point.
SHIB/USD chart, 4 hours, cup and handle pattern. Source: dhelSHIB
Is a capital flow from SHIB to DOGE about to happen?
The price of Shiba Inu may also be driven when capital flows from its main competitor, Dogecoin (DOGE).
Shiba Inu has been weaker than Dogecoin primarily due to Elon Musk continuously promoting the Government Efficiency Agency, an agency he founded to reduce excessive government spending, interestingly sharing the same acronym as Dogecoin's ticker code, DOGE.
There may be a capital rotation, as the SHIB token is currently in an oversold position compared to the DOGE token.
SHIB/DOGE chart, 1 day, RSI. Source: TradingView
The relative strength index (RSI) of Shiba Inu stands at 14.71 compared to Dogecoin, indicating that the price of SHIB is being oversold and selling pressure compared to DOGE is decreasing, data from TradingView shows.
RSI is a popular momentum indicator used to measure whether an asset is overbought or oversold based on recent price changes.
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