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Dog-themed cryptocurrency Shiba Inu (SHIB) is back in the spotlight as its large holder inflows surge by a staggering 206%, signaling renewed investor interest. Large holder inflows, which track the funds entering into whale addresses, have surged 206% this week, skyrocketing to 975.96 billion Shiba Inu in the last 24 hours, per IntoTheBlock data.
This spike in whale inflows coincides with the SHIB price turning green after yesterday's massive sell-off, which saw over $1.4 billion wiped out in liquidations across the crypto market.
Bitcoin (BTC) neared $89,000 in the early Wednesday session, up from a 24-hour low of $86,200, as market sentiment slightly improved and with major tokens showing signs of a recovery.
Shiba Inu likewise rebounded, showing gains in the past 24 hours as traders are still recovering from Tuesday's carnage, which saw overall capitalization drop by up to 10% and at least $1.2 billion in losses on bullish wagers.
Arman ShirinyanThe drop in the Sentiment Index, along with the recent large-scale liquidation event, suggested that assets were likely oversold and could see some respite in the very short term.
At the time of writing, SHIB was up 4.14% in the last 24 hours to $0.00001431.
Why is it important?
The 206% surge in Shiba Inu large holder inflows remains significant, having various implications for the cryptocurrency.
Tomiwabold OlajideLarge Holder Inflows may indicate that considerable buying activity is taking place. This is the case because many of these addresses buy on centralized exchanges and subsequently transfer their purchases to cold storage. While this is generally the case, large holders' addresses can also receive funds for business purposes and not for accumulation.
Spikes in Large Holders Inflows can also indicate price bottoms because these addresses prefer to buy in large quantities after major sell-offs.
With inflows increasing and the SHIB price rebounding, traders are now eyeing key resistance levels. If SHIB maintains its upward trajectory, it could break out and recapture higher price levels. However, market sentiment remains cautious, and sustained buying pressure will be crucial for further gains.
Dan Burgin
Vladislav Sopov