Shiba Inu (SHIB) has experienced a shocking 358% drop in its large holders’ netflow metric over the past 30 days, signalling a significant shift in market dynamics. This steep decline, while seemingly impossible at first glance, actually stems from a notable change in the way tokens are flowing into and out of whale wallets.
Understanding the 358% Drop in Netflow
At first, the 358% decline may sound mathematically implausible; how can a metric drop by more than 100%? The answer lies in the mechanics of netflow, which measures the difference between inflows (tokens entering whale wallets) and outflows (tokens leaving whale wallets). A negative swing of such magnitude indicates a sharp shift from accumulation to distribution.
For instance, if there had been +1 trillion SHIB flowing into whale wallets, followed by a reversal of -2.5 trillion SHIB flowing out, the netflow would reflect a dramatic transition, resulting in a decrease of more than 100%. In essence, SHIB has shifted from being accumulated by whales to being distributed at a rapid pace, raising concerns among investors.
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The Impact of Whales Unloading SHIB
This sudden reversal in netflows suggests that major players, or whales, are beginning to offload their SHIB holdings. When large holders begin selling off their positions, it often signals to smaller investors that the market may not be as stable as they thought. Such a move can erode trust and fuel market uncertainty.
This sharp divergence in netflows in just one month is concerning because it typically signals a lack of confidence among the token’s most significant investors. The move to a distribution phase from accumulation often leads to hesitation and caution among retail traders, who follow the actions of whales closely.
SHIB’s Struggle in a Downward Trend
The price chart paints a similarly troubling picture. Shiba Inu has been caught in a prolonged downward trend since February 2025, with every rally fizzling out before it can challenge crucial resistance levels near $0.000013. Multiple attempts to break through the 100-day and 200-day Exponential Moving Averages (EMAs) have failed, and the token has struggled to regain its previous momentum.
Conclusion: Uncertainty Looms Over SHIB’s Future
Shiba Inu’s 358% drop in its large holders’ netflow raises serious concerns for the token’s future. With whales beginning to unload their positions and market sentiment remaining uncertain, SHIB faces an uphill battle in regaining its bullish momentum. Investors should closely monitor the next few weeks to assess whether SHIB can overcome these hurdles or if it will continue to be trapped in its downward spiral.
