Dog-themed cryptocurrency Shiba Inu (SHIB) has seen a 1115% surge in major holder flows, giving insight into the changing positions of whales over a period of time.
Shiba Inu (SHIB) has seen a 1,115% increase in net flows from large holders over the past seven days, according to IntoTheBlock data. However, this jump comes with a notable twist: the increase in net flows is negative, suggesting that rather than accumulating more SHIB, whales may be reducing their positions or selling. This trend comes as Shiba Inu faces profit-taking alongside the broader crypto market.
Shiba Inu price has declined since hitting a high of $0.00001611 on August 24 as bulls faced resistance, failing to secure a breakout of a strong barrier near the daily 50 SMA at $0.0000154.
Here’s the catch
The negative 1115% spike in net flows suggests a significant volume of SHIB being withdrawn from whale wallets, signaling potential profit taking.
The recent surge in net flows may indicate that whales are taking advantage of current market conditions to lock in profits. This behavior is not unusual, as large holders often adjust their positions in response to market trends.
The broader crypto market is currently experiencing profit-taking, and the Shiba Inu is no exception. Bitcoin has fallen below $62,000, while Ethereum has fallen more than 6%.
At the time of writing, Shiba Inu was trading 1.82% lower over the past 24 hours at $0.0000143. If it closes in the red today, Shiba Inu would mark its third straight day of losses since August 24.
While the increase in net flows may initially appear to be a positive indicator of increased activity, the underlying reason for the surge points to a more cautious outlook as the crypto market faces short-term selling.
