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The dog-themed cryptocurrency Shiba Inu (SHIB) is seeing a whopping 1,275% surge in net flows from large holders just midweek.
IntoTheBlock’s Large Holders Netflow indicator provides insight into the change in positions of whales, or large holders, by measuring the volume of inflows minus outflows for these addresses.
Spikes in net flow can be seen as accumulation by large players, or whales, while declines indicate reduced positions or selling.
In the case of Shiba Inu, a 1.275% increase in net flow from large holders could suggest accumulation by whales, as this is accompanied by an increase in inflows.
According to data from IntoTheBlock, Shiba Inu shows a 677% increase in inflows from large holders over the week, which could reflect strong buying activity.
Here is a likely explanation.
Shiba Inu saw a significant rise, reaching highs of $0.00000966 over the weekend. Shiba Inu began to recover after hitting lows of $0.0000792 on November 9, prompting bulls to push through the $0.000009 barrier.
The price increase was temporarily halted as the bulls reached the $0.0000966 barrier. Shortly after, Shiba Inu faced profit-taking, and the price ended in losses for three consecutive days, causing SHIB price to fall to the daily MA 200 level at $0.000008, around where the bulls gained traction on November 10.
The increase in net flows could be due to whales hoarding SHIB as its price fell in the hope of acquiring it at a discount.
Whales are known to often accumulate during periods of declines, and the increase in inflows from large holders could suggest that SHIB whales bought when the price fell and approached a key support, from which it recovered.
Although it is recovering, SHIB price remains in the red and, at the time of writing, was down 1% in the last 24 hours to $0.0000084.
