Shiba Inu’s Outflow Soars 883%: Is a Major Trend Shift on the Horizon?

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There’s been a rise in the transfer of Shiba Inu, a virtual currency based on dogs, leading to discussions about possible factors influencing this movement.

Based on information from IntoTheBlock, there’s been an astonishing 883% increase in Shiba Inu (SHIB) outflows over the past week. This substantial shift led to a rise in large holder outflows from approximately 647 billion SHIB on January 15 to 1.11 trillion SHIB on January 16. This surge in outflows aligns with a major sell-off, causing SHIB’s value to drop to $0.0000196 as investors cashed out their profits.

I find it quite fascinating that there’s been a significant surge in withdrawals over the past day, and interestingly enough, this period has also seen a near 10% jump in the value of my SHIB holdings. This coincidence piques my curiosity.

Generally, outflows are often linked to investors cashing out their profits or reorganizing their portfolios, but the recent price increase over the past day implies a robust buying interest may be offsetting these sell-offs.

Despite an upward trend in withdrawals, the rise in Shiba Inu‘s price could indicate robust buying interest from various market participants, possibly retail investors or smaller whales stepping in to offset the outflow. Notably, the influx of large Shiba Inu holders, meaning funds being directed into whale wallets, has seen a significant increase of 177% over the course of this week.

SHIB price action

During today’s trading, the value of Shiba Inu saw a substantial increase. Starting at $0.000022 and $0.0000246, it climbed upward, resulting in a large, green candle on the daily chart.

Currently, Shiba Inu (SHIB) has risen by 8.78% over the past 24 hours to reach $0.00002419. This surge mirrors the broader crypto market’s recovery after a significant sell-off earlier this week. Over the last seven days, SHIB has even seen a 14% increase. Notably, indicators like trading volume and large holder transaction volumes, which suggest whale activity, have also risen, reinforcing the asset’s upward trajectory.

On January 13, Shiba Inu started gaining traction after finding strong support at a bottom price of $0.0000196. Currently, it’s heading towards having a positive trend for three out of every four days.

Looking forward, if Shiba Inu manages to surpass a substantial gap above its Daily Simple Moving Average (SMA) 50 at approximately $0.00002482, it could indicate a fresh bullish trend, potentially reaching targets of $0.00003 and even $0.000033. However, should the prices drop, the Daily SMA 200 at around $0.000019 is expected to offer robust support. Additionally, the Daily Relative Strength Index (RSI) slightly favors the bulls, being above its midpoint.

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2025-01-17 19:09