Shiba Inu whale holds 10% SHIB supply, 250,000x to $2.5B
Onchain data has revealed that an unidentified large investor is holding more than 10% of the Shiba Inu token supply, raising new concerns around the world's second largest memecoin distribution.
A secret Shiba Inu (SHIB) whale has more than 10% of the token's total supply across 150 addresses.
Although its holdings are worth more than $5 billion at their peak, the whale continues to hold its SHIB coins as of 2020, according to a November 19 X report by blockchain data firm Bubblemaps:
“Between August and October 2020, a new player entered the scene: 0x1406 bought 103T $SHIB (10% of the supply) for only 38 ETH. At the time, 38 ETH was worth $10k. Today, 103T $SHIB is worth more than $2.5 billion.
Shiba Inu whale. Source: Bubblemap
As of October 2020, the investor has made a return of more than 250,000 times on his initial investment of $10,000, making it “probably the biggest business in history” today, valued at more than $2.5 billion, according to Bubblemaps.
Whales with large holdings can have a significant impact on cryptocurrency price action. If the whale decides to sell a significant portion of its holdings on the open market, it could put significant downward pressure on the SHIB token.
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The Shiba Inu can be the sleeping giant of this bull cycle.
Despite earning a return on investment of more than 250,000 times, the investor did not choose to sell any SHIB holdings – perhaps showing confidence in memecoin's future potential.
The Shiba Inu is currently up more than 134% and up more than 27% in the past month, according to Cointelegraph data.
SHIB/USD, 1 year chart. Source: Cointelegraph
While the token is underperforming other top memecoins, Shiba Inu could be the sleeping giant of this bull cycle, according to market analysis.
The first major signal for SHIB's price range comes from the continuous cup and handle composition. This bullish chart pattern is usually resolved during a breakout, where the upside target is measured by adding the high of the pattern to the breakout point.
SHIB/USD, 4-hour chart, cup and handle pattern. Source: Delshib
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Will SHIB turn to DOGE capital?
Shiba Inu's value may increase as capital spins from its main dog-themed rival, Dogecoin (DOGE).
Shiba Inu is primarily Dogecoin's underperforming Elon Musk's relentless promotion of the Department of Government Efficiency, his brainchild of a government agency to reduce excessive government spending, which ironically shares the same initials as Dogecoin's token DOGE.
Considering that the SHIB token is highly traded with the DOGE token, capital rotation may occur.
SHIB/DOGE, 1-day chart, RSI Source: TradingView
The relative strength index (RSI) of Shiba Inu compared to Dogecoin stands at 14.7, indicating that SHIB's price is oversold and selling pressure is becoming weaker 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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