A Shiba Inu (SHIB) address that has been dormant for over two and a half years has sprung back into action, making a significant purchase of the meme coin. This development has generated interest within the SHIB community, sparking speculation about the investor’s motives.
Blockchain surveillance platform Spot on Chain first identified the activity on the whale’s address. The address initially received a sizable holding of 167 billion SHIB in April 2021, followed by a period of staking the tokens in July of that same year.
The investor then unstaked the holding in October 2021, securing a small addition of 12.9 million SHIB, before selling the 167 billion token holdings.
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Recent Shiba Inu (SHIB) Accumulation
Following this sale, the address remained inactive for an extended period. However, with signs of a looming bull market, the whale address is back.
In a flurry of activity spanning three hours on June 5th, 2024, the address executed a staggering 156 transactions, accumulating 323 billion SHIB.
This buying spree was fueled by the conversion of 2,188 wrapped Ethereum (WETH), approximately $8.29 million at the time.
Investor’s Holdings and Potential Strategies
Intriguingly, SHIB appears to be the dominant holding within the investor’s portfolio. Other holdings are negligible, with just a small amount of Ethereum (0.4 ETH) and 8,433 Cellframe (CELL) tokens present. This focus on SHIB suggests a strong belief in the project’s potential by the investor.
Whether the investor intends to replicate their 2021 trading strategy remains to be seen. In that instance, the investor staked the SHIB tokens for three months before unstaking and selling.
Notably, the 2021 purchase was made at a significantly lower price point of $604,540, compared to the current investment of $8.29 million. However, the sale in October 2021 coincided with the beginning of a significant price rally for SHIB, resulting in a substantial profit of $5 million for the investor.
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Market Context and SHIB’s Performance
The recent SHIB accumulation by this whale coincides with a period of recovery for the token. According to data from CoinMarketCap, SHIB has experienced a 6.21% price increase over the past 24 hours, reclaiming the key $0.00025 price level.
While this is positive momentum, SHIB trades below its 50-day exponential moving average (EMA). Converting this resistance level into support will be crucial to sustaining the recent gains.
The re-emergence of this prominent SHIB investor and the sizable purchase has undoubtedly impacted market sentiment. While the investor’s future actions remain uncertain, their renewed interest in SHIB has generated a buzz within the cryptocurrency community.
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