According to data from IntoTheBlock, Shiba Inu experienced an astonishing 841% surge in outflows within the past week.
The Large Holders Outflow metric, as monitored by IntoTheBlock, keeps tabs on funds exiting wallets held by significant whales or large investors. It proves invaluable in detecting moments of market unease.
Such spikes in outflows can be attributed to one of two primary factors: firstly, it might be indicative of selling from these prominent whale wallets, and secondly, it could signify substantial withdrawals from cryptocurrency exchanges.
Large holders may find themselves tempted to offload their assets during periods of heightened market volatility in order to safeguard against potential liquidation. However, it’s essential to remember that exchanges themselves are among the largest cryptocurrency holders, and, as such, significant outflows could very well signify funds being moved off the exchange platform.
For a more comprehensive assessment of the situation, it’s advisable to turn to the NetFlow indicator. This measure gauges the net change in holdings belonging to these large investors. In the case of Shiba Inu, we’ve seen a noteworthy negative shift of 96.69% in large-holder netflows over the last week. Such declines in net flows from major investors typically signify a reduction in their positions or, potentially, a significant sell-off.
Here’s a likely explanation for this intriguing development:
Shiba Inu’s price managed to reach a peak not witnessed in two months, hitting $0.00000825 on October 26, coinciding with a bullish trend in the overall market sentiment.
However, this high point in Shiba Inu’s price prompted some profit-taking activities, with the token’s value dropping to $0.00000757 on October 27.
Curiously, the decrease in Shiba Inu’s price coincided with a sharp increase in outflows from large holders, which peaked at 715.13 billion SHIB tokens on October 26. This uptick suggested that significant Shiba Inu investors, commonly referred to as “whales,” capitalized on the recent bull market rally to cash out their gains.
As of the time of this report, Shiba Inu has managed to recover from this decline, with large holder outflows significantly receding over the past 24 hours to 274.37 billion SHIB tokens.
At the moment, SHIB appears to be on the path of recuperation, showing a marginal 0.63% increase in the last 24 hours, reaching a value of $0.00000781, as per data from CoinMarketCap.