Dog-themed cryptocurrency Shiba Inu is seeing a staggering 671% growth in large holder inflows, a metric that tracks the flow of funds into whale addresses, according to IntoTheBlock.
A spike in large holder inflows may indicate that significant buying activity is occurring. This is because many of these addresses are buying on centralized exchanges and subsequently moving their purchases into cold storage. Spikes in large holder inflows may also indicate a price bottom because these addresses tend to buy in large quantities after significant corrections.
The surge in large holder inflows comes as SHIB price teeters on the brink of a major breakout. At the time of writing, SHIB is up 8.36% in the last 24 hours to $0.00001548. Shiba Inu is also up 17% on the week.
The broader crypto market has been buoyed by the Fed’s rate-cut signals, with many digital assets posting gains. The Shiba Inu has benefited from this overall positive sentiment, posting gains over the past 24 hours.
SHIB Price on Verge of Major Breakthrough
Shiba Inu has been trading in a range in recent weeks, creating pressure that many analysts believe could soon manifest itself in a major price breakout. The recent surge in inflows has only added fuel to the speculation as the market looks forward to a sharp move higher.
Technical analysts are closely monitoring key resistance levels, the violation of which could trigger a wave of buying and push the SHIB price up.
In this case, the daily 50 SMA, currently at $0.00001561 and which has been holding back SHIB since mid-April, remains a critical level to watch.
Shiba Inu is challenging this key level again after yesterday’s surge, with the price touching a high of $0.00001533 in today’s trading session. In case of a sustained breakout, Shiba Inu could target the daily SMA 200 at $0.00002 and $0.00003 respectively.
With Shiba Inu poised on the brink of a major price breakout, the coming days could prove crucial in determining the token’s short-term trajectory. If SHIB bulls fail to sustain the price breakout, support is expected at $0.000010.
