A popular dog-themed digital asset Shiba Inu (SHIB) is experiencing a notable shift in market behavior. A significant 1,079% increase in net flows from large holders, commonly known as whales, caught the attention of investors and analysts.
Understanding Net Flows and Their Effects
cryptocurrency Netflow, a critical metric in the market, refers to the net amount of a digital asset entering or leaving exchanges. Large Holder Net Flow in particular focuses on whales’ transactions. An increase in this metric usually indicates accumulation. This indicates that influential players are potentially purchasing the asset in anticipation of a price increase.
In the Shiba Inu’s case, the whale net flow increased from 286.31 billion SHIB to a staggering 4.68 trillion SHIB on December 10, marking a significant shift in whale behavior. This move can be interpreted as a strategic accumulation, especially after SHIB’s sharp price drop on December 11.
Price Fluctuations and Market Reactions
SHIB’s price experienced a notable decline, falling from an intraday high of $0.00001015 to a low of $0.00000915. This price action led to a loss of the important $0.000010 level. The downtrend has threatened further declines amid a broader market trend toward profit-taking.
Koinfinans.com As we reported, SHIB, despite trading below the $0.00001 threshold, is taking steps towards getting back on its feet, as evidenced by the 1.21% increase in its value over the last 24 hours. This resurgence reflects bulls’ efforts to regain lost ground in a volatile and unpredictable market.
Increase in Entry and Whaling Transactions
In addition to the net flow increase, Shiba Inu, also witnessed a 430% increase in inflow from large holders, according to data from IntoTheBlock. This influx of whale activity was further highlighted by a transaction spotted by Whale Alert that involved moving 4.1 trillion SHIB (worth approximately $40.8 million) into a whale wallet.
The purpose behind this significant transfer remains speculative. However, it may indicate a large-scale over-the-counter (OTC) purchase taking place outside the usual areas of crypto exchanges. Such moves often indicate increased investor interest in SHIB and set the stage for a potentially significant market shift.