The cryptocurrency market has been buzzing with news of a significant transaction involving Shiba Inu (SHIB) tokens. On December 3, a wallet linked to the United States government transferred over 54 billion SHIB tokens to a newly created wallet. This transaction, indexed by the popular blockchain analytics platform Arkham Intelligence, has caught the attention of crypto enthusiasts and analysts alike.
Transaction Details: A Closer Look
The specific transaction involved the transfer of 54,897,092,549 SHIB tokens to an Ethereum wallet identified as ‘0x995’. As a result of this transfer, the original sending wallet, associated with the US government, no longer holds any SHIB tokens. This significant move has increased the recipient wallet’s total crypto portfolio to an impressive $33 million.
Interestingly, these SHIB tokens were acquired by the US government through the seizure of assets from Alameda Research, a trading firm linked to the now-defunct crypto exchange FTX. This seizure was part of a broader legal action involving the forfeiture of over $700 million in assets due to legal issues surrounding FTX and Alameda. The SHIB tokens were just one of the many digital assets seized during this legal process.
Related Transactions and Wallet Activity
Data from Arkham indicates that the recipient wallet was newly created, with its first transaction occurring shortly after the SHIB transfer. It received $1.061 million worth of AEGRO tokens from the same wallet that moved the SHIB tokens. Within less than two hours, the wallet also received other crypto assets from the US government-affiliated address, including 4,815 ETH (approximately $17.9 million), 13.58 million BUSD ($133 million), and 631,959 POWR ($221,000).
While it’s unclear whether the US government plans to sell its SHIB holdings, the lack of any identified exchange or over-the-counter (OTC) addresses linked to the transaction suggests that the government may still retain the tokens.
Shiba Inu Price Analysis: Potential for a 130% Surge?
The Shiba Inu token, often compared to Dogecoin (DOGE), has been under the spotlight for its potential price trajectory. Crypto analyst Rony Kapoor (@LearnRony) recently shared a comparative chart analysis between DOGE and SHIB, suggesting that SHIB might follow a similar upward pattern.
The Cup and Handle Pattern: A Bullish Signal?
The chart for Dogecoin illustrates a clear “Cup and Handle” formation—a bullish continuation pattern known to precede significant price breakouts. DOGE’s handle formed near the $0.21 level, and after a period of consolidation, the token surged to a peak of approximately $0.48, marking a substantial 128% increase from the breakout point.
Similarly, SHIB’s chart indicates the potential formation of a Cup and Handle pattern. The current trading price hovers around $0.000030, with resistance levels identified at $0.000038—the anticipated handle resistance. If SHIB follows a trajectory similar to DOGE, a successful breakout could target a price level around $0.000087, mirroring the proportional increase observed in DOGE’s previous movement.
Technical Indicators and Future Projections
Technical indicators such as the Fibonacci retracement levels support this analysis. SHIB is currently trading below the 0.618 Fibonacci level at $0.000032. A break above this level could see SHIB targeting the 0.786 Fibonacci level at $0.000038. Subsequent targets include the yearly high from March at $0.00004569. Notably, the all-time high of $0.00008854 aligns closely with the projected target from the Cup and Handle pattern identified by Kapoor.
As the cryptocurrency market continues to evolve, the movements of major players like the US government can significantly impact market dynamics and investor sentiment. With the ongoing developments in the Shiba Inu token’s price analysis, crypto enthusiasts and investors are keenly watching the next steps in this intriguing saga.
