According to IntoTheBlock data, Shiba Inu witnessed an 841% spike in outflows during the week.
Large Holders Outflow from IntoTheBlock tracks funds leaving addresses belonging to whales or large holders and can be useful to spot moments of panic.
Spikes in outflows can indicate one of two things: selling from whale addresses or withdrawals from exchanges.
Large holders may be tempted to sell assets during periods of high volatility to avoid liquidation. However, because exchanges are some of the largest holders, large outflows can often be funds leaving the exchange.
The true picture can be observed by using the NetFlow indicator, which measures the net change in whale holdings. Shiba Inu has had a negative 96.69% reduction in large-holder netflows in the last seven days. Drops in large-holder netflows are frequently indicative of reduced positions or selling.
Here is likely explanation
The Shiba Inu price rose to a two-month high of $0.00000825 on Oct. 26 as the market embarked on a bullish run.
Shiba Inu had some profit-taking after this high was struck, with prices falling to $0.00000757 on Oct. 27.
The drop in the Shiba Inu price coincided with a surge in outflows from large holders, which reached 715.13 billion SHIB on Oct. 26. This suggested that large Shiba Inu holders or whales took profit after the most recent bull-driven rally.
Given Shiba Inu's recovery following the decline, large holder outflows have dropped significantly in the past day to 274.37 billion SHIB.
SHIB was recouping its losses at the time of writing, marginally up 0.63% in the last 24 hours to $0.00000781, according to CoinMarketCap data.