Large-scale holders have made Shiba Inu their abode as the token’s capital inflows have shot up by 2200% in the past seven days. Prominent analytics platform IntoTheBlock’s data revealed stunning growth based on the study of funds flowing into addresses belonging to whales or large holders on a weekly, monthly, or yearly basis.
Typically, investors hold between 0.1% and 1% of the circulating supply of a cryptocurrency, while whales typically own more than 1%. Therefore, a sharp increase in major holders’ Inflows may be a sign of active buying. This may be the case given that many of these addresses make purchases on centralized exchanges before transferring them into cold storage.
In addition to that, as these addresses have a tendency to purchase in huge quantities after significant price reductions, spikes in large-holder inflows can also indicate market bottoms. It is crucial to be aware of the outflows from these locations since entities routinely withdraw money they recently acquired for commercial purposes.
Given that SHIB’s price has hastily retraced after a recent high, profit-taking might be the culprit behind the decline. For the first time since May 2023, the price of Shiba Inu surpassed the crucial $0.000095 threshold. After Binance stated that SHIB was a recognized collateral asset for loans on the exchange, the price increased.
Shiba Inu’s Mounting Sell Orders
The crypto exchange’s approval of SHIB as a collateral asset has triggered a bullish market reaction. But some strategic traders appear to be seeking out short-term profit opportunities behind the scenes.
Shiba Inu bears have begun erecting sell-walls, according to a more thorough study of IntoTheBlock’s Exchange On-chain Market Depth chart. The bears have placed active orders to sell 1.5 trillion SHIB tokens, as seen below in bold. This has already surpassed the 1.4 trillion SHIB purchase orders from buyers, which is concerning.
The Exchange On-chain Market Depth statistic displays the aggregate purchase and sell orders that traders have recently placed across reputable cryptocurrency exchanges at the current price distribution. As was mentioned earlier, there is a chance that bears will dump a significant amount of SHIB once the ongoing rally reaches a euphoric top.
The price trajectory of SHIB is still mostly bullish overall. However, cautious stop-losses will be used by strategic investors to lessen the impact of any potential flash price correction.