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Despite the meme coin's impressive 55% growth over the past three months, Martinez's concerns are centered around a significant hurdle that could jeopardize SHIB's future growth trajectory.
Martinez's analysis, relying on data from IntoTheBlock, reveals an eye-watering concentration of 422 trillion SHIB, held by nearly 90,000 addresses at an initial price of $0.000016. The sheer volume of these tokens, if unloaded simultaneously, could unleash a wave of selling pressure capable of denting SHIB's price and disrupting its current bullish momentum.
The apprehension arises from the potential consequences of such a massive sell-off. If these large-scale holders decide to liquidate their SHIB holdings, the market could be flooded with tokens, triggering a substantial price correction.
Adding to the complexity is the fact that these addresses are currently holding SHIB at a loss, intensifying the pressure on the token's value.
The burning question now is whether Shiba Inu can navigate this hurdle and sustain its growth. Despite the looming threat, SHIB has already experienced a commendable 22% surge since the beginning of December, breaching the coveted $0.00001 per SHIB mark.
Nevertheless, the presence of this colossal concentration of tokens in whale wallets injects an element of uncertainty, casting doubt on the durability of SHIB's ongoing bullish run.