The dog-themed cryptocurrency Shiba Inu (SHIB) has experienced a remarkable surge in large holder netflows, indicating a potential accumulation by whales, or large investors. This substantial increase, reaching 1,275% by midweek, suggests a growing interest in SHIB among these major players.
The Large Holders Netflow indicator, developed by IntoTheBlock, tracks the changes in the positions of whales by measuring the difference between inflows and outflows from their addresses. Spikes in netflow typically indicate accumulation, while decreases suggest selling or reduced holdings.
Shiba Inu Experiences Whale Buyout
In the case of Shiba Inu, the 1,275% surge in large holder netflow is accompanied by a 677% increase in inflows, further solidifying the notion of accumulation. This buying activity could be attributed to several factors, including:
- Price Dip and Support: Shiba Inu experienced a significant price decline, reaching lows of $0.0000792 on November 9. This dip likely attracted whales, who often accumulate during periods of price weakness, believing in the cryptocurrency’s long-term potential.
- Recovery and Key Support: As Shiba Inu began to recover from its lows, reaching highs of $0.00000966 over the weekend, whales may have continued to accumulate, anticipating further price gains. The rebound from the $0.000008 support level, which bulls defended, could have fueled their confidence.
- Community and Ecosystem Growth: Despite the recent price volatility, Shiba Inu maintains a strong and active community, which continues to drive its popularity. Additionally, the development of the Shibarium Layer-2 solution and the Shib Name Service (SNS) could further attract whale interest.
While the SHIB price remains slightly down at the time of writing, the massive surge in large holder netflows signals a positive sentiment among whales. Their accumulation suggests a belief in SHIB’s future, which could potentially drive further price appreciation in the long run. At the time of writing, SHIB was priced at $0.00000858 with a rise of 2.0% over the last 24 hours as per Market Cap.