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Dog-themed cryptocurrency Shiba Inu (SHIB) is experiencing a massive 1,275% surge in large holder netflows by barely midweek.
The Large Holders Netflow indicator from IntoTheBlock provides an idea of the change in positions of whales, or large holders, by measuring the volume of inflows minus outflows for these addresses.
Spikes in netflow can be seen as accumulation from large players, or whales, while decreases indicate reduced positions or selling.
In the instance of Shiba Inu, a 1,275% increase in large holders' netflow might suggest accumulation by whales, as this is being accompanied by a surge in inflows.
Per IntoTheBlock data, Shiba Inu is depicting a 677% rise in large holder inflows for the week, which might reflect strong buying activity.
Here's likely explanation
Shiba Inu experienced a significant rise, reaching highs of $0.00000966 over the weekend. Shiba Inu began to recover after hitting lows of $0.0000792 on Nov. 9, prompting the bulls to push for the $0.000009 barrier.
The price surge was temporarily halted as bulls reached the $0.0000966 barrier. Soon after, Shiba Inu faced profit-taking, with the price finishing in losses for three consecutive days, bringing the SHIB price down to the daily MA 200 level at $0.000008, around where bulls got traction on Nov. 10.
The spike in netflows might be due to whales accumulating SHIB as its price fell in hopes of acquiring it at a discount.
Whales are often known to accumulate during periods of dips, and the spike in large holder inflows might suggest SHIB whales buying as the price fell and approached key support, from which it rebounded.
Although making a recovery, the SHIB price remains in red and, at the time of writing, was down 1% in the last 24 hours to $0.0000084.