In a surprising turn, Shiba Inu (SHIB) experienced a remarkable surge in a key on-chain metric within 24 hours. According to data from IntoTheBlock, the Large Holders Outflow metric skyrocketed from 60.44 billion SHIB to a staggering 967.33 billion SHIB, marking an extraordinary 1,510% increase.
Source: IntoTheBlock
Interpreting The Metric
This metric tracks funds leaving addresses held by whales or investors owning over 0.1% of the cryptocurrency’s circulating supply. It’s vital for monitoring movement. Such dramatic increases in outflows often raise concerns, suggesting possible panic-induced selling.
However, it can also signify substantial withdrawals from exchanges, typically seen as a bullish signal. The surge in outflows can be interpreted in various ways. On one hand, it might indicate large holders offloading assets amidst heightened market volatility to manage positions and avoid liquidations.
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Conversely, the exodus of funds from exchanges, which usually hold significant amounts of cryptocurrency, implies a different narrative, possibly signaling a shift in trading strategies or investor sentiment.
Impact On SHIB Price
Despite the significant surge in the outflow metric, Shiba Inu’s price experienced a slight setback over the same period, recording a modest 1.63% decline. However, this dip appears inconsequential, especially considering the cryptocurrency’s resilience as it quickly rebounded, surging by an impressive 3% within a day.
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The surge in the Large Holders Outflow metric for Shiba Inu (SHIB) presents an intriguing development in the cryptocurrency market. While it raises questions about potential panic selling, it also suggests possible shifts in trading strategies or investor sentiment.
The impact on SHIB’s price has been relatively minor, with the cryptocurrency displaying resilience and bouncing back swiftly from any setbacks.
