Anika Begay
The Shiba Inu has experienced interesting price action in the past few days along with market tensions in various sectors. As recently highlighted by NewsBTC, a significant bearish trend in the stock market has extended its influence into the cryptocurrency space and SHIB was not left behindAs a result, the meme token dropped to $0.00001088, which is its lowest point in over six months.
However, the cryptocurrency industry is like a cycle of ups and downs, and many experienced investors are aware of this. Experienced investors understand that such price drops often present buying opportunities, especially for assets with strong community support and long-term potential. As such, many have taken the opportunity to accumulate tokens at low prices. Such an interesting accumulation has come from a SHIB whale, with on-chain data showing the acquisition of hundreds of billions of tokens from a centralized exchange.
Whale Buys Shiba Inu for Millions of Dollars
The whale accumulation in question was detected via on-chain data on the Arkham Intelligence platform. This the data reveals that a specific whale address, identified as “0x4B5C,” made a substantial acquisition of 220.34 billion SHIB tokens in the last 48 hours. The accumulation unfolded through a series of transactions, with the first and largest acquisition being 216.397 billion SHIB tokens. This was followed by 3.55 billion tokens and another 400 million tokens. At the time of the acquisitions, the tokens were collectively worth approximately $3 million.
A closer look at the transaction data traces the tokens’ origins back to Coinbase Prime Custody, Coinbase’s secure digital asset storage and management solution for institutional investors. Coinbase Prime Custody’s involvement indicates that this whale is likely an institutional player or a high-net-worth individual using institutional-grade services to manage their crypto assets. Such a significant move reflects confidence in the token’s future despite its recent price decline.
Speaking of falling prices, the recent decline underscores the inherently speculative nature of nature of meme coinsThe sharp decline of SHIB was triggered by a Bitcoin price dropwhich was enough to push it below several key support levels that it had successfully held for the past six months.
SHIB has since recovered some of its losses since bottoming out at $0.000011. At the time of writing, SHIB is trading at $0.00001333, which represents a 22.5% recovery from its recent low of $0.000011. This upward move suggests that some investors have taken advantage of the lower prices to re-enter the market or increase their holdings, as was the case with the address “0x4B5C”. However, SHIB has not yet fully recovered from the recent downturn, as it is still down 16.2% in a seven-day time frame.
Featured image created with Dall.E, chart from Tradingview.com
