On-chain data has revealed that a large, unknown investor holds more than 10% of the Shiba Inu token supply, raising new concerns about the distribution of the world’s second-largest memecoin.
The mysterious Shiba Inu (SHIB) whale owns more than 10% of the total supply of tokens across 150 addresses.
According to a November 19 post by blockchain data company Bubblemaps, whales have continued to hold SHIB coins since 2020 despite their holdings being worth over $5 billion at peak valuation.
“Between August and October 2020, new players emerged. 0x1406 purchased 103T $SHIB (10% of supply) for just 38 ETH. At that time, 38 ETH was worth $10,000. Today, 103T $SHIB is worth over $2.5 billion.”
Shiba Inu whale. Source: Bubble Map
Since October 2020, investors have made more than 250,000x their initial investment of $10,000, which is now worth over $2.5 billion. According to Bubblemaps, this is “perhaps the biggest deal in history.”
Whales with large reserves can have a huge impact on the price action of cryptocurrencies. If whales decide to sell a significant portion of their holdings on the open market, this could put significant downward pressure on the SHIB token.
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The Shiba Inu may be the sleeping giant of this Ox cycle
Despite securing a return on investment of more than 250,000 times, investors did not sell his SHIB holdings. This shows confidence in the future potential of MEMCOIN.
Shiba Inu is currently up more than 134% year-to-date and up more than 27% over the past month, according to Cointelegraph data.
SHIB/USD, 1-year chart. Source: Cointelegraph
While market analysis suggests that the token has underperformed compared to some of the other top memecoins, Shiba Inu could be a sleeping giant in this bull cycle.
The first major sign of a SHIB price rise comes from a persistent cup-and-handle setup. This bullish chart pattern usually resolves on a breakout, with the upside target measured by adding the maximum height of the pattern to the breakout point.
SHIB/USD, 4-hour chart, cup and handle pattern. source: DellSHIB
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Is there capital circulation from SHIB to DOGE?
The price of Shiba Inu may also rise as capital circulates in its main dog-themed rival, Dogecoin (DOGE).
Shiba Inu has underperformed Dogecoin primarily because of his constant promotion of the Department of Government Efficiency, a government agency designed by Elon Musk to reduce excessive government spending. Interestingly, this institution has the same initials as DOGE, the Dogecoin ticker.
Considering that SHIB tokens are extremely oversold compared to DOGE tokens, a capital rotation may occur.
SHIB/DOGE, 1-day chart, RSI. Source: TradingView
Shiba Inu’s Relative Strength Index (RSI) compared to Dogecoin is 14.71, suggesting that SHIB’s price is oversold and selling pressure is decreasing compared to DOGE, TradingView data shows.
RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
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