Shiba Inu Triggers 1,115% Netflow Surge as Whales Move, But Here’s the Catch

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As a seasoned crypto investor with a knack for deciphering market trends, I must confess that the recent surge in Shiba Inu (SHIB) netflows has piqued my interest – albeit with a hint of skepticism. The 1,115% increase in large holder netflows over the past week might indicate heightened activity, but the negative connotation suggests profit-taking rather than accumulation. This is not an uncommon behavior among whales, who are known for their agility in adjusting positions based on market trends.

The popular dog-themed digital currency, Shiba Inu (SHIB), has seen a significant increase of 1,115% in the number of large investors holding the coin, which is often viewed as a sign that big players, or “whales”, are accumulating more of this cryptocurrency over a specific period.

Shiba Inu Triggers 1,115% Netflow Surge as Whales Move, But Here's the Catch

As an analyst, I’ve noticed an intriguing development in the Shiba Inu (SHIB) market according to IntoTheBlock data. Over the past week, there has been a significant 1,115% rise in large holder netflows. However, this surge holds an interesting twist: it appears that these increases are actually decreases, suggesting that instead of buying more SHIB, whales might be offloading their positions or selling. This trend coincides with profit-taking across the broader crypto market where Shiba Inu is also experiencing a dip.

On August 24th, Shiba Inu prices dropped following their peak at $0.00001611, as buyers struggled to push through resistance and break above the robust daily Simple Moving Average (SMA) 50 level at $0.0000154, which acted as a significant barrier.

Here’s the catch

The negative 1,115% surge in netflows suggests a considerable volume of SHIB moving out of whale wallets, signaling potential profit-taking.

Lately, it seems like big investors (whales) might be capitalizing on the present market situation by cashing out their gains, a tactic frequently employed when the market trend favors them. Such adjustments in position are typical for major stakeholders who closely follow market fluctuations.

Presently, the general crypto market is witnessing a trend of selling for profits, and Shiba Inu is not immune to this trend. Notably, Bitcoin has dropped beneath $62,000, and Ethereum has experienced a decline exceeding 6%.

Currently, as I’m typing this, Shiba Inu is decreasing by 1.82% over the past 24 hours, with a price of $0.0000143. If today ends with a decline, Shiba Inu will have experienced its third straight day of losses since August 24.

At first glance, an uptick in netflows could appear as a sign of increased engagement. However, delving deeper into the cause reveals that this spike is rooted in a more conservative stance, given the temporary sell-off occurring within the cryptocurrency market.

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2024-08-27 19:10