Shiba Inu (SHIB) is back in the spotlight, but not because of a bullish price rally. Instead, the meme coin is attracting attention due to a highly unusual on-chain event: a 1,010.72% spike in large holder inflows over the past seven days.
This kind of activity typically signals strategic moves by whales, but what makes this development alarming is that it’s happening while SHIB’s price continues to decline.
Price Drops as Inflows Surge
As of now, SHIB trades around $0.00001148, reflecting a sharp 25% drop from its early May peak. This downtrend has pushed the token below its 50, 100, and 200 Exponential Moving Averages (EMAs), confirming a bearish technical outlook.
Additionally, trading volume continues to fall, and the Relative Strength Index (RSI) shows no meaningful rebound in momentum. Together, these indicators suggest that SHIB lacks any near-term bullish momentum.
Yet, during this weakening market structure, large wallets have increased their SHIB holdings by more than 1,010%, according to on-chain data. This disconnect between price action and whale activity has sparked concern among traders and analysts alike.
Whale Inflows: Accumulation or Exit Strategy?
Historically, large holder inflows tend to precede price rallies or mark the beginning of a distribution phase. The fact that SHIB’s price has continued to fall during this inflow spike makes the latter scenario more likely.
If these transactions represent internal transfers among whale-controlled wallets, it could signal preparation for large-scale selling. In that case, SHIB may be headed for more downside, especially given its current low liquidity and fragile investor sentiment.
A sudden coordinated sell-off could trigger a cascade of panic-selling, further weakening the market and adding to SHIB’s volatility.
Related article: 11.46 Trillion Shiba Inu Flood Futures Market as Whales Return and Price Breaks Resistance
Is There Any Upside?
There is a slim chance that these whales are positioning themselves ahead of a short-term rebound, possibly speculating on a bounce before a broader continuation of the downtrend. However, relying on this outcome is risky, especially when technical indicators offer no support for a sustained reversal.
The most reasonable interpretation, based on current data, is that SHIB may be entering a period of heightened volatility, one that could result in brief speculative surges or steeper corrections.
Final Thoughts
A 1,010% increase in large holder inflows during a price downturn is not just unusual, it’s potentially alarming. Whether these whales are accumulating for a rebound or preparing to offload, the mismatch between price and inflow data cannot be ignored.
Traders should approach SHIB with caution. This anomaly could either mark the start of a rally or signal looming sell pressure from large wallets. In either case, staying alert and closely monitoring on-chain movements is essential in this increasingly volatile SHIB market.
