A mysterious investor’s massive holdings raise concerns about SHIB distribution while highlighting the memecoin’s potential.

Whale Holds Over 10% of SHIB Supply

A mysterious Shiba Inu (SHIB) whale has been revealed to own over 10% of the token’s total supply across 150 addresses. Onchain data shared by blockchain analysis firm Bubblemaps on November 19 shows that this investor purchased 103 trillion SHIB tokens between August and October 2020 for just 38 ETH (around $10,000 at the time). These holdings are now worth over $2.5 billion, despite a peak valuation of $5 billion.

250,000-Fold Return: A Historic Trade

The whale’s investment represents an astonishing 250,000-fold return, possibly making it one of the most profitable trades in cryptocurrency history. Despite the astronomical gains, the investor has not sold any of their SHIB holdings since acquiring them, signalling strong confidence in the token’s long-term potential.

Impact of Large Holdings on Price

Such large holdings can significantly influence SHIB’s price. If the whale decides to sell a substantial portion of their tokens, it could create significant downward pressure on the market. However, their decision to hold highlights faith in Shiba Inu’s prospects as a prominent memecoin.

Shiba Inu: A “Sleeping Giant”?

Shiba Inu has underperformed compared to its rival, Dogecoin (DOGE), partly due to Elon Musk’s active promotion of DOGE. Yet, analysts believe SHIB could emerge as a “sleeping giant” during this bull cycle. Its year-to-date gains of 134% and recent 27% monthly rise are promising.

Technical analysis suggests a bullish outlook for SHIB. The formation of a cup-and-handle chart pattern indicates a potential breakout, with targets based on the pattern’s maximum height. Furthermore, SHIB’s relative strength index (RSI) of 14.71 against DOGE indicates it is oversold, suggesting that selling pressure is diminishing.

Capital Rotation from DOGE to SHIB?

A potential rotation of capital from Dogecoin to Shiba Inu could further boost SHIB’s price. With its current market dynamics and technical indicators, SHIB may be poised for a strong rally, solidifying its position as a key player in the memecoin space.