Shiba Inu has seen some interesting price action in recent days, alongside market tensions across sectors. recently emphasized by NewsBTC, a significant bearish trend in the stock market has extended its influence to the cryptocurrency space, and SHIB did not lag behindThis caused the meme token to drop to $0.00001088, its lowest point in more than six months.
However, the crypto industry is 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. That’s why many have the ability to collect tokens at low prices. Such an interesting accumulation comes 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 worth millions
The whale accumulation in question was noticed via on-chain data on the Arkham Intelligence platform. This reveal data 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, the first and largest of which was 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 around $3 million.
A deeper analysis of the transaction data traces the token’s origins back to Coinbase Prime Custody, Coinbase’s secure storage and management solution for institutional investors. The involvement of Coinbase Prime Custody indicates that this whale is likely an institutional player or a high-net-worth individual who uses institutional services to manage their crypto holdings. Such a significant move reflects confidence in the token’s future, despite its recent price drop.
When it comes to price declines, the recent decline underscores the inherent speculative nature nature of meme coinsThe sharp decline in SHIB was caused by a Bitcoin price dropwhich was enough to push the price below some key support levels that the price had successfully maintained over the past six months.
SHIB has since recovered some of its losses since reaching a low of $0.000011. At the time of writing, SHIB is trading at $0.00001333, which is a 22.5% recovery 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 16.2% in a span of seven days.
Main image created with Dall.E, chart from Tradingview.com