Shiba Inu (SHIB), the dog-themed cryptocurrency, has recently experienced a staggering 625% surge in large holder inflows. This rise signals a wave of bullish sentiment among large players, commonly known as whales. Data from IntoTheBlock reveals this remarkable increase within the last seven days. Large Holder Inflows track the funds moving into whale-owned addresses, suggesting significant buying activity. Notably, many of these addresses purchase on centralized exchanges and transfer their acquisitions to cold storage. This behavior indicates a preference for securing assets, especially during periods of market volatility.
Large Holders Inflow, Source: IntoTheBlock
Price Bottoms And Bulk Purchases
Additionally, a surge in large holder inflows can signal price bottoms since whales tend to buy in bulk after significant drops. These entities capitalize on lower prices to accumulate more assets at a discount, demonstrating a strategic approach to market fluctuations.
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While entities sometimes transfer out recently received funds for business purposes, Shiba Inu’s large holder netflows substantiate the rise in inflows. Notably, SHIB’s netflows have increased by 2,393% within the same timeframe. Spikes in large holder netflows suggest accumulation by whales, further emphasizing their strategic buying behavior.
Consecutive Days Of Price Losses
Despite the increase in whale activity, Shiba Inu faces its sixth consecutive day of price losses since July 27. As of the time of writing, SHIB is down 2.43% in the last 24 hours, trading at $0.00001552, and has experienced a 7.57% decline over the past week. Nevertheless, whales are typically known to utilize periods of decline to accumulate more assets at a discount.
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The surge in SHIB’s on-chain metrics may hint at a possible price recovery. Technically, a relief rally or at least a dead cat bounce seems feasible following days of decline. However, the extent of the recovery remains uncertain. Moreover, a sustained breakout above the daily moving averages could serve as the first signal of a bullish comeback.
Shiba Inu’s recent surge in whale inflows and netflows highlights significant buying activity among large holders. While the cryptocurrency has faced consecutive days of price losses, the strategic accumulation by whales suggests a potential for recovery. Investors should closely monitor SHIB’s performance and on-chain metrics for further indications of market trends.
