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According to data from IntoTheBlock, Shiba Inu witnessed an 841% increase in capital outflows during the week.
IntoTheBlock large holder outflows track funds leaving addresses belonging to whales or large holders and can be useful in detecting 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 real picture can be seen using the NetFlow indicator, which measures the net change in whale holdings. Shiba Inu has had a negative 96.69% reduction in net flows from large owners in the last seven days. Declines in net flows for large holders are typically indicative of reduced positions or selling.
Here is a likely explanation.
The Shiba Inu price rose to a two-month high of $0.00000825 on October 26 as the market embarked on a bull run.
Shiba Inu saw some profit-taking after reaching this high, and prices fell to $0.00000757 on October 27.
The drop in the Shiba Inu price coincided with an increase in capital outflows from large holders, which reached 715.13 billion SHIB on October 26. This suggests that large holders of Shiba Inu or whales made profits after the latest bull-driven rally.
Given the recovery of Shiba Inu after the drop, outflows from large holders decreased significantly in the last day to 274.37 billion SHIB.
SHIB was recouping its losses at the time of writing, up slightly by 0.63% over the past 24 hours to $0.00000781, according to data from CoinMarketCap.
