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Dog-themed cryptocurrency Shiba Inu (SHIB) has experienced a 1,115% surge in large holder netflows, an indicator that provides an idea of the change in positions of whales in a given time period.
According to IntoTheBlock data, Shiba Inu (SHIB) is reflecting a 1,115% surge in large holder netflows over the last seven days. However, the spike carries a notable twist: the increase in netflows is a negative one, signaling that instead of accumulating more SHIB, whales might be reducing their positions or selling. This tendency comes as Shiba Inu faces profit-taking alongside the broader crypto market.
Tomiwabold OlajideShiba Inu dipped after reaching highs of $0.00001611 on Aug. 24, as bulls encountered resistance after failing to secure a breakout past the strong barrier near the daily SMA 50 at $0.0000154.
Here's the catch
The negative 1,115% surge in netflows suggests a considerable volume of SHIB moving out of whale wallets, signaling potential profit-taking.
The recent surge in netflows may indicate that whales are taking advantage of current market conditions to lock in profits. This behavior is not uncommon, as large holders often adjust their positions in response to market trends.
The broader cryptocurrency market is currently facing profit-taking, and Shiba Inu is no exception. Bitcoin has dipped below $62,000, while Ethereum is down over 6%.
At the time of writing, Shiba Inu was trading down 1.82% in the last 24 hours to $0.0000143. If today closes in the red, Shiba Inu would mark its third consecutive day of losses since Aug. 24.
While the increase in netflows might initially seem like a positive indicator of heightened activity, the underlying reason for this surge points to a more cautious outlook as the crypto market faces short-term selling.
Vladislav Sopov
Dan Burgin