Shiba Inu has experienced interesting price action in the past few days alongside market tensions across various industries. As highlighted recently by NewsBTC, a significant bearish trend in the stock market has extended its influence into the cryptocurrency space, and SHIB wasn’t left behind. As such, the meme token fell to $0.00001088, which is its lowest point in over six months.
However, the crypto industry is like a cycle of ups and downs, and many expert investors are aware of this. Seasoned investors understand that such price declines 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. One such 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 Millions Worth Of Shiba Inu
The whale accumulation in question was noted through on-chain data on the Arkham Intelligence platform. This data reveals that a specific whale address, identified as “0x4B5C,” made the substantial acquisition of 220.34 billion SHIB tokens over the past 48 hours. The accumulation unfolded through a series of transactions, with the first and largest being the acquisition of 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 deeper analysis of the transaction data traces the origin of the tokens back to Coinbase Prime Custody, which is Coinbase’s solution for secure storage and management of digital assets 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 holdings. Such a significant move reflects confidence in the token’s future despite the recent price downturn.
Speaking of the price downturn, the recent decline underscores the inherently speculative nature of meme coins. SHIB’s sharp decline was triggered by a dip in Bitcoin’s price, which was sufficient to push it below several key support levels it had successfully held for the past six months.
SHIB has since recovered some of its losses since it bottomed at $0.000011. As of the time of writing, SHIB is trading at $0.00001333, which is a recovery of 22.5% from its recent low of $0.000011. This upward movement suggests that some investors have taken advantage of the lower prices to re-enter the market or increase their holdings, as in the case of address “0x4B5C.” However, SHIB has not yet fully recovered from the recent downturn, as it is still down by 16.2% in a seven-day timeframe.
Featured image created with Dall.E, chart from Tradingview.com
