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Shiba Inu Whale Hulk has just bought 8 trillion coins worth at least 290 million dollars. This comes after reports of increasing whale activity in the last few days.
Recently, another whale Gimli bought 50 billion coins. The third transaction within one month. These activities have caught market attention with analysts trying to figure why there is an increase in whale activities.
Hulk now has an estimated total portfolio in the coin worth over 450 million dollars. After this purchase became public, there were speculations in the market it could be the Robinhood platform in their preparations to list the coin.
However, Robinhood still claims they have no plans of listing the coin soon despite a petition that has 540 thousand signatures.
Why is the Whale Activity Increasing?
Shiba has been trading at its lowest since hitting an all-time high in October. This presents a good opportunity for buyers to take advantage of the lower price.
The coin is trading 60% lower from its October high. A combination of lower prices with market indicators points to a potential bullish reversal. This is among the reasons driving whale activities.
After a few weeks in the red, price action signals and technical indicators show a reversal is highly likely. The coin is currently trading at a key zone that has previously been a resistance and support area.
The momentum indicators also show the Shiba price is in an extreme oversold position. A key trigger for buyers to get in and avoid missing out if the reversal happens.
Effects of Whale activity on the Shiba Inu Coin Price.
Despite the increasing whale activity, the price of Shiba remains red. You could argue the whole crypto industry is in a bear market especially the major currencies such as Bitcoin and Ethereum.
Under normal circumstances, such a significant whale buying spree should affect the price. With the whales buying a large number of coins and price action indicating a coming reversal, there is a high likelihood of a near bullish momentum.
Future of Shiba Inu Coin Price
The bear momentum is exhausting and this could trigger a reversal. In the short term, there are expectations the price could rally to the previous high.
Such a rally would grow the coin by at least 200% from the current price. However, in the long term, analysts believe the coin could lose another zero as Shiba continues to launch the ongoing projects. These include the Shiba Metaverse and acceleration of the coin-burning process.