The United States government recently transferred over 54 billion Shiba Inu (SHIB) tokens to a newly created wallet, as reported by blockchain analytics platform Arkham Intelligence on December 3. The transaction, valued at $1.5 million, involved transferring the SHIB tokens to the Ethereum wallet ‘0x995’, which now holds a total crypto portfolio worth $33 million. These tokens were acquired by the US government through the seizure of assets from Alameda Research, affiliated with the now-defunct crypto exchange FTX, as part of a broader forfeiture action involving millions in assets.
The recipient wallet of the SHIB tokens was recently created and has also received other crypto assets from the US government-affiliated address, including 4,815 ETH, 13.58 million BUSD, and 631,959 POWR. While it is unclear whether the US government has sold its SHIB holdings, the absence of any identified exchange or over-the-counter (OTC) addresses suggests that they may still hold the tokens. This transfer has sparked interest in the potential price surge of SHIB, with analysts comparing it to Dogecoin (DOGE) and pointing out a Cup and Handle pattern forming, indicating a potential 130% increase in price levels.
Crypto analyst Rony Kapoor shared a comparative chart analysis between DOGE and SHIB, noting similarities in the Cup and Handle formation that led to a significant price breakout for DOGE. Currently, SHIB is trading at around $0.000030, with resistance levels identified at $0.000038, which could indicate a potential handle resistance. Technical indicators, such as Fibonacci retracement levels, support this analysis, with SHIB trading below the 0.618 Fibonacci level at $0.000032. A breakout above this level could target the 0.786 Fibonacci level at $0.000038, with subsequent targets set at the yearly high from March at $0.00004569.
The potential for SHIB to follow a trajectory similar to DOGE’s previous movement and reach a price level around $0.000087 has garnered attention from investors and traders alike. The Cup and Handle pattern identified by analysts align closely with the all-time high of $0.00008854, indicating a strong possibility of a significant price surge in the near future. As the crypto market continues to evolve and government involvement in the space becomes more prevalent, monitoring transactions and analyzing patterns such as Cup and Handle formations can provide valuable insights for strategic investment decisions.
In conclusion, the recent transfer of SHIB tokens by the US government to a newly created wallet has sparked speculation about the potential price surge of the token. Analysts have identified a Cup and Handle pattern forming, indicating a possible 130% increase in price levels if SHIB follows a trajectory similar to DOGE. Technical indicators support this analysis, with Fibonacci retracement levels suggesting potential targets for SHIB’s price movement in the near future. As the crypto market remains dynamic and unpredictable, staying informed about transactions and patterns can help investors navigate the market and make informed decisions for their portfolios.
