Canine-themed Shiba Inu is showing a surprising on-chain spike as the market experiences selling pressure.
The total crypto market capitalization sank 1.54% in early Monday trading as Bitcoin and the bulk of cryptocurrencies fell.
Shiba Inu was not immune to bearish action, falling roughly 4%; bulls thus lost the $0.000007 level they had zealously guarded against the bears. SHIB was down 3.89% in the last 24 hours to $0.000000692 at the time of writing.
While the price of Shiba Inu is falling because of the general market sell-off, on-chain data paints a rather surprising and interesting picture.
Based on IntoTheBlock data, Shiba Inu is seeing a massive spike in large holders' inflow, up 1,587%. This is surprising given the recent sell-off on the cryptocurrency market. Large holder inflows jumped from 169 billion SHIB on Oct. 7 to a staggering 2.98 trillion SHIB on Oct. 8.
The Large Holders Inflow metric from IntoTheBlock tracks funds flowing into addresses belonging to whales, or large holders. Because this category of holders prefers to buy in bulk following significant price decreases, a surge in large holder inflows could foreshadow market bottoms.
Santiment, an on-chain analytics firm, suggests that the Shiba Inu network might be nearing capitulation or bottoming since the network recently saw one of the greatest levels of trader loss-taking v. profit all year. It also observed mild panic among Shiba Inu traders.
While uncertainty looms due to the market's current instability, crypto traders should bear in mind that the market has different phases, and a bear cycle never lasts forever.
That said, a break above Shiba Inu's daily moving averages of 50 and 200 at $0.0000075 and $0.0000086 might be the first signal of a bullish comeback.