A watcher.guru data revealed that crypto whales seem unfazed by the recent price correction of the SHIB token even though some daily crypto traders are worried that the token’s bullish run might end sooner than expected.
Whales Purchase 20B SHIB
The watcher.guru data showed that each whale invested an average of $1m in the token, which is approximately 20B SHIB tokens. Since late last month, whales have been increasing their SHIB tokens regularly regardless of the price of the dog-themed cryptocurrency. Besides SHIB, investors have also been growing their ETH holdings, with an average of $176K invested in the second-largest cryptocurrency.
The Effect Of Whales’ Actions On The Crypto Market
Crypto enthusiasts believe it is a good omen for any digital asset when whales are interested in it because whales can change the trend of any asset since they control the market. Any virtual asset’s ecosystem won’t mind an investment from a whale, especially when such an asset is illiquid. But, if the whale should go on a selling spree on such a digital asset, the asset’s price might crash or decline steeply.
However, the general trend of the crypto market is often affected by huge sell-offs from retail traders. Once this sell-offs reduce significantly, the market becomes calm. Despite gaining 14% in the past 24 hours, SHIB has also lost 5% of its value within the same period. There haven’t been many changes to SHIB price in the last seven days compared to its volatility which reduced from 30% to 10%.
Kucoin CEO To Hold Shiba Inu For The Long-Term
Kucoin exchange chief, Johnny Lyu, has revealed that he would hold his SHIB tokens over the long term. Lyu revealed during a recent MarketWatch interview that millennials’ interest in low-priced digital assets like SHIB would continue to drive its demand unless it no longer offers sizeable returns. He further revealed that he would also be holding his BTC and doge for the foreseeable future.
Lyu added that “the rise of BTC has attracted many young investors to cryptocurrency. But BTC price makes BTC out of reach for many of them. Hence, they turn to smaller-priced coins like doge and SHIB where they can buy lots of tokens for a little amount.” Recently, most investors have shited from investing only in the top cryptocurrencies to investing in the smaller-priced cryptos, particularly the dog-themed cryptocurrencies like SHIB and doge.
They are doing so because there is less volatility in BTC, which means less return on their investments. Thus, small investors prefer to invest in these low-priced digital assets in the belief that they will make sizeable returns from them. Then, they can invest in the less volatile cryptos such as BTC and eth for the future.
Top India crypto exchange, CoinDCX, has announced through its official Twitter channel that it will list SHIB on its trading platform beginning from November 12. The news might be responsible for SHIB being the top trending digital currency on CoinMarketCap as of yesterday.