The Shiba Inu dog-themed cryptocurrency (SHIB) triggered a 2,139% surge in net flows from large holders. However, despite the surge, the net flow of large holders to SHIB remains negative, which has several implications.
The surge in net flows from large holders coincides with SHIB’s rejection of the $0.0000263 resistance level, with the price falling for the second consecutive day.
IntoTheBlock’s Large Holders Netflow indicator provides information on the change in positions of whales and investors by estimating the number of inflows minus outflows for these addresses. Spikes in net flow indicate accumulation by large holders, or whales, and declines indicate reduced positions or selling.
Shiba Inu also recorded influxes, with a 395% increase in influxes from large keepers; however, inflows were offset by outflows, leading to negative net flows for large holders.
After a brief rally, Shiba Inu failed to maintain its upward momentum and was rejected at $0.0000263, proving to be a significant barrier for SHIB price. This inability to break above the resistance level has led to increased selling pressure from large holders.
The resistance level acts as a psychological barrier in trading, allowing sell orders to accumulate as buying momentum wanes. SHIB’s failure to break above this threshold indicates strong selling pressure at that price point, leading to a temporary setback for the bulls.
At the time of writing, SHIB fell 1.13% over the past 24 hours to $0.00002526. For SHIB to regain its bullish momentum, it will need to overcome the current selling pressure and establish support above the critical resistance level. Wider cryptocurrency market trends could also impact SHIB’s performance. Bullish market sentiment could support SHIB recovery.
If the price breaks above $0.0000263, Shiba Inu will face its next significant hurdle around $0.000030. Meanwhile, traders are keeping an eye on the daily 50 SMA at around $0.00002465 to see if it will act as intermediate support for SHIB prices in the very near term.
