- A SHIB whale wallet has sold over 400 million tokens.
- SHIB supply out of profit increased to over 70%.
Recent data indicates that a significant Shiba Inu [SHIB] whale has shown signs of exhaustion with its SHIB holdings by selling off billions of tokens.
What impact did this massive sell-off have on the exchange flow, and what is the current status of the SHIB supply in terms of profitability?
Shiba Inu whale dumps at a loss
Spot on Chain data revealed that a Shiba Inu whale recently liquidated 421.6 billion SHIB tokens on centralized and decentralized exchanges.
The whale transferred 311.6 billion SHIB tokens, equivalent to $2.97 million, to Binance [BNB], and another 110 billion SHIB for 1.01 million Tether [USDT] on a decentralized exchange.
Further analysis indicated that the whale had been holding these tokens for over two years and incurred a loss of $6.32 million, marking a substantial 61.4% loss from the sale.
How the Shiba Inu exchange flow reacted
AMBCrypto’s examination of Shiba Inu’s exchange flow on Santiment showed that on the 24th of February, there was a considerable increase in inflow compared to outflow.
The whale’s transaction significantly impacted the exchange inflow, with the data revealing that by the end of the 24th of February, over 426 billion SHIB had flowed into all exchanges.
This inflow was substantial for that particular day but also stood as the second-highest inflow for the month. The SHIB inflow was over 24 billion at the time of this writing.
Source: Santiment
Additionally, an analysis of SHIB outflow on the 24th of February showed an outflow of over 120 billion. At the time of this writing, the outflow has reduced to around 2.1 billion.
The dominance of inflow suggested that a larger volume of tokens is being sent to various exchanges for selling purposes compared to the quantity being withdrawn.
Analyzing SHIB’s price trend
Despite the significant sell-off, Shiba Inu displayed an upward trend on the 24th of February, as the daily timeframe chart indicated.
SHIB achieved a 1.15% increase by the conclusion of the trading session on that day. However, there has been a minor decline at the time of this writing, with SHIB trading at about $0.000009.
An analysis of its Relative Strength Index (RSI) showed that it was slightly above its neutral line. This implied that it was in a bullish trend at press time, although it was displaying a weaker trend.
Source: Trading View
Negative supply in profit dominates SHIB
Analyzing Shiba Inu’s supply in profit on Santiment showed that more than half of the SHIB tokens were not in a profitable state at press time, and over 758 trillion SHIB tokens were out of profit.
How much are 1,10,100 SHIBs worth today?
This figure signified that almost 76% of the total SHIB supply was not in a profitable position at the time of writing.
This data provided context to the significant loss of over 60% incurred by the whale wallet when it sold its SHIB holdings.
Source: Santiment