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Dog-themed cryptocurrency Shiba Inu is seeing a massive spike in an indicator that depicts whale inflow.
According to IntoTheBlock data, Shiba Inu is experiencing a 2,595% spike in large-holder inflow, which tracks the funds going into addresses belonging to whales. Large holders' inflow saw a staggering spike over two days, from 275.2 billion SHIB on Feb. 7 to a whopping 2.31 trillion SHIB on Feb. 9.
From Feb. 8 to 9, large holders' inflows increased significantly, from 1.4 trillion SHIB to 2.31 trillion SHIB.
Two scenarios are likely with the spike in large holder inflows: First, it may indicate substantial buying activity. This is the case because many of these addresses buy on centralized exchanges and subsequently transfer their purchases to cold storage.
Second, spikes in large-holder inflows can indicate price bottoms preceding price increases, as these addresses tend to buy in bulk after significant corrections.
SHIB's price has lulled since its surge to a high of $0.00001194 on Dec. 17. The decreases brought the SHIB price to a support level of $0.00000843, near its daily moving average of 200 on Jan. 24.
SHIB's price has rebounded somewhat but remains trapped within its daily moving averages of 50 and 200 at $0.0000086 and $0.00000962, respectively.
Bulls are presently making consistent efforts to break out of these price limits, with their efforts stopping short at an intraday high of $0.0000095 at press time after three consecutive days of rise.
At the time of writing, SHIB was down 0.05% in the last 24 hours to $0.00000938. While the surprising spike in whales' inflows might be noteworthy, it is important to keep these addresses’ outflows in mind, as they can also often transfer out funds they just received. Large holders' outflow in the same time frame was 309%.