Shiba Inu: Why do the Largest Ethereum Whales Continue to Hold SHIB?
Among the top 100 Ethereum wallets, Shiba Inu remains the third largest asset (Ethereum excluded), with a total share of 13.82%, about $643,190,553. After suffering a loss in value of nearly 23% over the past week, the SHIB price is currently holding at $0.00001223, 85.95% away from its all-time high in October 2021.
On Monday, February 13th, whale address BlueWhale0073 buys SHIB worth $2.755 million and sells it again shortly after – but why?
Apparently, said whale address liquidated the position again after just one day. But what was the point? Only a few minutes after the purchase of the tokens, the cryptocurrency price fell by over 6% – did a possible panic sale follow?
Read more about Shiba Inu’s price latest developments and find the most important business news of the day with the Born2invest mobile app.
Is another sell-off of Shiba Inu imminent?
Among the top 100 Ethereum wallets, Shiba Inu remains the third largest asset (Ethereum excluded), with a total share of 13.82%, about $643,190,553.
Only USDC and USDT are ahead of Memecoin, with total shares of 19.23%, about US$894,894,040, and 14.25%, about US$663,147,025, respectively. So it seems that other major wallets continue to see the token as a good investment opportunity while preferring to hedge their remaining funds in stablecoins.
Nevertheless, there are currently some good reasons for a possible sell-off of the token:
As a look at IntoTheBlock In/Out of Money indicator shows, 35.86% of all SHIB addresses are currently posting a profit. So, given the bearish macrostructure, a further sell-off would be quite possible.
IMoreover, the token has been consolidating between a high of $0.00001799 and a low of $0.00000714 since last May. Since the price does not seem to find acceptance above the midline, the probability of a further downward movement increases from this perspective as well.
In addition, Ethereum and Bitcoin recorded a significant price increase until last week and are currently in danger of breaking this structure. As the rest of the crypto market follows the trend of the two major cryptocurrencies, the threat of price collapse applies to Shiba Inu as well.
Last but not least, the release of the US Consumer Price Index for January overshadowed the market. Especially this month, investors were eagerly waiting for the numbers.
So, given all this, it seems highly risky to make an investment these days – especially when it comes to such a volatile asset as SHIB.
Last month, some hints from Shytoshi Kusama, lead developer of Shiba Inu, suggested a possible Shibarium launch on Valentine’s Day. For example, a heart adorned his Twitter profile along with the comment:
“I’m learning to play the flute real quick before I put Shibarium in a heart-shaped box.”
Enthusiasts of the project were excited, given that the Layer 2 solution was supposed to bring so many benefits to the network.
However, it’s probably clear by now that Shibarium won’t be launched on Valentine’s Day. Against the backdrop of today’s release of the US consumer index, launch conditions were also extremely uncertain.
But perhaps this expectation towards the launch of the Layer 2 solution explains the conspicuously dominant SHIB positions in the major Ethereum wallets.
After suffering a loss in value of nearly 23% over the past week, the SHIB price is currently holding at $0.00001223, 85.95% away from its all-time high in October 2021.
(Featured image by LeandroDeCarvalho via Unsplash)
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