A large investor made $8.66 million from Shiba Inu (SHIB) and Wrapped Bitcoin (WBTC) earlier this year. Based on recent data, this investor is now looking to buy PEPE, SHIB, and NEIRO.
This may be the same investor who, in March, sold 533.6 billion SHIB for 15.99 million DAI at about $0.00003. In just one month, they made a total profit of $8.24 million from 11 wallets. Here are the details and what it could mean for the crypto market.
How it happened
Within an hour, the whale spent $12.8M Dai across 9 wallets to buy three tokens and is still holding 7.19 million $DAI stablecoins. He bought 326.3 billion PEPE, 144.5 billion Shiba Inu, and 550.1 million NEIRO. The 144.5 billion SHIB, equivalent to $3.89M, has significant implications for the cryptocurrency market, especially for SHIB traders and investors.
Considerations for SHIB traders and investors
There are two sides to potential perspectives from traders and investors. A pessimistic approach to significant purchases like this instills fear in smaller investors, who react based on fear of potential sell-offs, which influences trading behaviours and price movements.
The optimistic approach considers such purchases as an indicator of confidence in an asset. A positive market sentiment could attract more investors who’d buy in anticipation of price increases.
However, the latter could go in the opposite direction if the whale liquidates their holdings, which could lead to unanticipated price declines.
Technical Analysis of SHIB
If the whale’s purchase leads to increased buying pressure from other investors, it could lead to a breakout above the current resistance level, $0.000019. Alternatively, if this accumulation is perceived as a precursor to selling, it could reinforce the resistance level.
Additionally, the whale purchase coincides with an increase in SHIB’s burn rate, which reduces supply and increases upward price pressure when demand is strong.
Therefore, traders should closely monitor whale activities for their valuable insight into potential market activity. In this particular case, the recent accumulation promotes a bullish sentiment that encourages speculative trading to capitalise on anticipated price increases.
