SHIB whale breaks years of silence: moves 16.4% of the total supply

Shiba Inu (SHIB) community has witnessed a noteworthy event. A large wallet known for holding a massive amount of SHIB has ended a long period of dormancy and re-entered the market.

The Legendary “Top Whale” Footprint

The origin of this wallet is intriguing. In the early stage of 2020, it invested just 37.8 ETH (worth approximately $13,700 at the time) to purchase 1.03 trillion SHIB. The significance of this decision became clear during the market peak in 2021, when its holdings were valued at about $9.1 billion.

However, this whale has a notable characteristic. Unlike most successful traders, it resisted the temptation to take profits. During the cycle peak of 2021, it continued to hold most of its SHIB without selling.

What the Current Holdings Indicate to the Market

Chain analysis shows that this address currently holds approximately 96.684 trillion SHIB, accounting for 16.4% of the total supply. At current prices, this is valued between $722 million and $726 million. Compared to the glory days of 2021, the figures have decreased significantly, but it still demonstrates considerable influence in the market.

The Significance of Large Transfers to Exchanges

Recently, this wallet moved about 469 billion SHIB (approximately $3.64 million) to a major trading platform. On-chain observers detected this activity on December 18. This action has stirred caution among market participants.

Transfers to exchanges can have multiple implications. They might be a prelude to selling, or for collateralization or other trading purposes. However, it’s important to note that such movement does not necessarily mean an imminent sell-off.

Insights from Past Activity Patterns

This isn’t the first time this wallet has made such a large move. In July 2023, after a 610-day dormancy, it resumed activity. At that time, it split 1.5 trillion SHIB into three different addresses, sending each about 500 billion SHIB (worth approximately $3.75 million at the time).

From this timeline, we can infer the behavior pattern of this whale. It tends to act after long periods of silence, which often causes market nerves to tighten.

Technical Market Warnings

As of now, SHIB has declined by 3.9% over the past 24 hours, in line with broader market downward pressure. From a technical perspective, concerns are mounting.

The weekly chart has already fallen below a key support level around $0.00000790. Considering further downside risk, traders should watch the October low of $0.00000680 as the next line of defense.

If this level is broken, the next target would be near the June 2023 low of around $0.00000543.

In Uncertainty

Ultimately, whether the recent transfer of funds to exchanges by this whale signals a true “sell-off” or serves other purposes remains uncertain at this point. However, the fact that an entity holding an overwhelming 16.4% of the total supply has resumed large-scale transfers is undeniable. Market participants cannot ignore this movement.