Shiba Inu Whale Inflows Surge 625%: Will SHIB Price Follow?
According to blockchain analytics firm IntoTheBlock, Shiba Inu (SHIB) recorded a substantial 625% increase in whale or large holder inflows over the past week. This has led to speculation about whether SHIB’s price will follow suit.
Large holder inflows track funds moving into addresses owned by major investors, often indicating significant buying activity. This surge in whale inflows suggests that these large holders are strategically buying more tokens on centralized exchanges and transferring their assets to cold storage.
Will SHIB Surge?
A spike in large holder inflows can often signal a price bottom, as these investors tend to buy in bulk following significant price drops. This activity can be attributed to speculation that SHIB’s price might increase, as whales often accumulate more tokens when they anticipate a potential price rise.
Remarkably, net flows for Shiba Inu also surged by 2,393% within the same timeframe, suggesting increased token accumulation. Shiba Inu’s netflows measure the movement of tokens across all wallets, while whale netflows track the activity of wallets owned by large holders.
SHIB’s Resilience in Downturn
Currently, Shiba Inu is experiencing its sixth consecutive day of price losses since July 27. SHIB has dropped 2.17% in the past 24 hours to $0.00001495 and is down 11.30% for the week.
Shiba Inu’s market cap fell by 2.16% to $8.7 billion, reflecting bearish market sentiment. This decline is part of a broader trend affecting many cryptocurrencies. However, the increase in whale inflows during a market downturn is a positive sign, suggesting that strategic buying during price dips could stabilize and boost the market.
Increased buying activity can drive prices up due to higher demand. The Relative Strength Index (RSI) for Shiba Inu, which measures market strength, is currently at 48. An RSI between 40 and 90 indicates an uptrend, with 40-50 acting as support. SHIB’s current RSI suggests it is still within a favorable range for potential growth.
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