Shiba Inu: Whale sells billions of SHIB; Dumping spree incoming?

Lavina Daryanani
Source: Analytics Insight

With the market remaining choppy on 21 June, Shiba Inu was one of the loftiest gainers. Resultantly, investors were fetched with salivating returns as the token’s price jumped by around 50%, from $0.00000801 to $0.000012.

The optimism was, however, suctioned out gradually, and Shiba Inu registered a red candle the next day. Consequentially, a bearish divergence was formed on SHIB’s chart, with the price making a lower high and RSI forming a higher high.

BlueWhale capitalizes on Shiba Inu’s volatility

Whales love volatile habitats, right? Whenever Shiba Inu’s price has see-sawed, selected large market participants have taken due advantage of the same.

Whale tracking platform WhaleStats brought to light that ‘BlueWhale’ bought approximately 163.28 billion Shiba Inu tokens, worth $1.64 million, 10.5 hours back. This means that SHIB was worth around $0.00000964999 at the time of purchase.

Source: WhaleStats

When BlueWhale’s wallet was tracked at press time, it had only 3.4 billion SHIB tokens that were cumulatively worth merely $34.3k. Thus, it can be speculated that the said pseudonymous whale ended up dumping most of the tokens in possession.

Source: WhaleStats

So, is a macro dumping spree incoming?

Large market participants, as a group, have been hibernating of late. Statistics from ITB brought to light that the volume of transactions >100k remains to be deflated. The said metric did note a minor bump on 21 June when the price rallied, but it couldn’t continue to stride forward, bringing attention to whales’ inactivity when compared to other price fluctuation periods.

Source: ITB

Alongside, as highlighted in a recent article, the transaction count of the top 100 SHIB HODLers has also dramatically fallen, re-emphasizing the fact that whale interest is currently wearing away.

So, if whales continue to remain untriggered as a group, then a dumping spree might not essentially materialize. Also, with the sentiment remaining to be bearish, whales have no alluring incentive to dump their tokens. Possibly, when the price trend reverses to bullish and the profitability numbers rise, the Shiba Inu market will likely note another round of sell-off.