What ETH whales loading up $3.54m SHIB could mean for investors

Written by Aashna Dunwani

Reviewed by Aashna Dunwani

Updated 14:42 EDT July 28, 2022

The latest crypto market seems to have had a bit of relief, having stayed in red for a while. However, not all cryptocurrencies in the top 50 market cap have recovered.

Meme token, Shiba Inu [SHIB] posted some gains. However, at the time of writing, the altcoin favored the red. Additionally, the selling pressure across the entire crypto market was not over. So what could have triggered a possible recovery for SHIB?

Whales in charge

According to Whalestats, Ethereum [ETH] whales have been buying SHIB. The volume purchased over the last 24 hours of 27 July was as high as $3.54 million, amounting to 334 billion SHIB tokens.

These were accumulated in two massive transactions. An Ethereum whale named “Gimli” initially bought 187 million SHIB tokens.

https://twitter.com/WhaleStats/status/1552134004081655810

About one hour later, Whalestats reported that another ETH whale named “Bluewhale 0195” bought another 147 million SHIB.

https://twitter.com/WhaleStats/status/1552138675688980480

Since the announcement, SHIB has continued to gain momentum. It recorded a 1.36% uptick as of 27 July, surpassing many other cryptocurrencies’ growth.

Expected run or big surprise?

The gains posted by SHIB may have come as a surprise or were justified by whale action.

Based on the price analysis, SHIB should not have gone up on uptick despite an increased burn rate. The chart given below revealed that its previous levels did not predict a bullish move.

According to the chart, the Awesome Oscillator (AO) was on the verge of falling below equilibrium, indicating that SHIB was to follow a bearish move.

Similarly, the On-Balance-Volume (OBV) showed that SHIB was supposed to move sideways.

With this analysis, the whale pump into the SHIB ecosystem could have affected the price uptick. Before we conclude that they played a part, let’s see what other metrics suggest.

Santiment data showed that SHIB had not necessarily had a significant volume increase. The one-day circulation also decreased— from 3.32 trillion to 996.17 billion. Certainly, while supply had gone up. However, the possibilities of a strong rally might be slim due to these metrics.

Besides the whale accumulation, Shiba Inu has also secured a partnership with Shopping.io, the crypto-based eCommerce payment software. The CEO confirmed this development in a tweet.