Shiba Inu (SHIB), the popular dog-themed cryptocurrency, has witnessed an astonishing 3,015% surge in large holder Netflow. This dramatic increase in the market provides insight into the movements of “whales,” or large holders of the token. This recent surge has unusual implications for the Shiba Inu community.
Understanding Netflow and Its Impact on SHIB
Generally, Netflow measures the balance of tokens entering and exiting large holders’ wallets. A positive Netflow suggests accumulation, indicating that whales are buying more SHIB tokens. On the other hand, a negative Netflow, like the current 3,015% spike, signals that whales are offloading their holdings.
This negative trend raises pertinent questions among community members about the motives behind these large transactions. Are Shiba Inu whales anticipating a sell-off, or are they repositioning their assets in response to market volatility?
The timing of this Netflow spike is particularly crucial. Notably, Shiba Inu is facing a challenge at the daily Simple Moving Average (SMA) of 50. This is happening after the price increase on May 15, where SHIB jumped from $0.00002286 to $0.00002558.
However, it hit a resistance wall, identified at the daily SMA 50 level of $0.00002487, and has struggled to maintain its upward momentum since.
Shiba Inu Battles Resistance and Market Dynamics
The resistance level at the daily SMA 50 has proven to be a formidable barrier for SHIB. Despite several attempts to break through, the token has repeatedly closed below this threshold. At the time of writing, SHIB’s price has dipped by 0.40% in the last 24 hours, settling at $0.00002397.
This struggle at the resistance level is critical, as breaking through could potentially pave the way for further gains. However, the persistent rejection at this level reflects market uncertainty and the significant influence of whale movements on SHIB’s price trajectory.
Technical analysts say the tug-of-war between buyers and sellers and the current market situation offers both opportunities and risks. While the increased Netflow activity signals heightened interest and substantial transactions involving SHIB, the negative trend calls for caution. Nonetheless, other analysts are bullish as the Bollinger Bands are narrowing for Shiba Inu.
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