On the 18th of October, 2022, an unknown wallet moved more than 3.38 trillion SHIB to another freshly created crypto wallet. The new crypto wallet only holds SHIB as of now, which is probably its main and only purpose. This 3.38 trillion SHIB token move is currently worth around $34 million. This is quite a big sum, although the total market cap is currently around $5.53 billion.
That’s because if that whale decides to short all of that SHIB, the price of SHIB will drastically decrease in a short period of time. Investors who are aware of this move will now be wary, and some might even panic and start selling. That move might prove to be problematic, however, because of the current price evaluation of SHIB. But more about that in a second.
At this moment, Shiba Inu continues to have the largest ownership among the top 2000 ETH whales. The top 2000 ETH wallets, according to WhaleStats, have a total value of SHIB in their wallets of $126,088,527 ($126.08M). This is $2 less than it was on the 18th of October. On the 19th of October, WhaleStats reports:
🐳 The top 5000 #ETH whales are hodling
— WhaleStats (tracking crypto whales) (@WhaleStats) October 18, 2022
$126,088,527 $SHIB
$89,973,880 $MKR
$71,355,790 $UNI
$69,896,957 $BIT
$65,809,824 $LOCUS
$46,993,940 $LINK
$37,888,770 $MOC
$36,535,044 $BEST
Whale leaderboard 👇https://t.co/kOhHprRmd1 pic.twitter.com/D7Saz6NwuI
What Problems Can The 3.38 Trillion SHIB Whale Move Cause
Typically, the reason why people are afraid of crypto whales is that they can have a huge impact on the whole crypto economy. For example, if the 3.38 Trillion SHIB gets listed for sale, the price of SHIB will decrease significantly. This might spell trouble because of the current price of SHIB, which is around $0.00001015 at the time of writing.
You might notice that this is a potential psychological threshold. In fact, in the crypto space, such thresholds are very important because they can have a huge impact on the future price of a certain token. In the case of the crypto market, people are attempting to construct indicators because the market doesn’t have as many indications as the stock market or the price of conventional currencies in forex.
Looking at a token’s price is one method of doing it. Let’s provide an example. Consider a cryptocurrency that is on the verge of reaching a price of $100. Due to a psychological threshold, many individuals will attempt to sell the token at this exact. Since there are no signs of when this will end, individuals pick a price that just seems reasonable. It is preferable to sell in these circumstances right before that price threshold.
Well, it goes the other way around when a cryptocurrency is losing price. There is a certain threshold that investors believe a cryptocurrency can survive. However, if the price goes below that threshold, these same investors give up on the token or wait for a significant dip before they buy in again.
Last Time SHIB Fell Below $0.000010
The last time SHIB dropped below $0.000010 was back in June – arguably the worst month in the crypto space for the past 10 years. Shiba Inu (SHIB) then yielded the $0.00001 threshold and within minutes lost another 23% of its price evaluation, dropping to $0.0000073. Many investors at that time believed that SHIB might be going out of business, but fortunately for the believers, consumers purchased the dip. It makes no difference whether they are doing it because they support the idea or are only interested in making money.
In case you are wondering what the price of SHIB will be by the end of the year click here.
Warning To SHIB Investors
You must pay attention to the current movement of SHIB as it will be crucial for the future price of the token. Although cryptocurrency’s got a lot of fans, this does not mean it will remain on top indefinitely. Some investors might lose confidence in SHIB after it drops below $0.000010 yet again, at which point there are two potential outcomes.
First, people will start selling, then buy the dip and re-balance the price of SHIB in the market.
The second option is that the price will drop so low it will force everyone to want out. Of course, people will still buy the dip and might even manage to recover some of SHIB’s previous price. However, this is not likely in the current bear market.
The one hope SHIB has is that investors who’ve been in the token for a long time and are staking SHIB will do everything in their power to recover the price. That could happen simply by overbuying the token and further accumulating SHIB.
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