Dog-themed meme coin Shiba Inu (SHIB) has seen a more than 10-fold increase in large holder netflows over the past day, indicating major whale accumulation even amidst bearish price moves. According to on-chain data analytics firm IntoTheBlock, SHIB large holder netflows jumped an astounding 1079% from Dec 10th to Dec 11th.
Keypoints
- Shiba Inu has seen a massive 1079% increase in large holder netflows over the past day, jumping from 286 billion SHIB on Dec 10th to 4.68 trillion SHIB on Dec 11th
- The increase in netflows likely indicates whale accumulation and buying the dip during SHIB’s recent price decline
- In addition to netflows, large holder inflows have risen 430% with over 4 trillion SHIB worth $40 million transferred to a whale wallet
- SHIB price dropped significantly starting Dec 11th, falling from over $0.00001015 down to $0.00000915, losing the key $0.00001 level
- Despite price drops, other metrics like SHIB’s burn rate and Fear & Greed index suggest investor sentiment is still relatively bullish
Specifically, netflows surged from 286 billion SHIB on Dec 10th up to a staggering 4.68 trillion SHIB the following day. Netflows represent the total inflows minus outflows for these large wallets, providing an idea of accumulation or distribution activity from whales and institutional players.
The huge spike in netflows suggests large holders are taking advantage of discounted SHIB prices to build their positions after a significant price decline starting Dec 11th. SHIB fell from intraday highs of $0.00001015 down to $0.00000915 on Dec 11th alone, erasing the key $0.00001 support level that had held for over a week.
#Crypto intelligence tracker @santimentfeed reveals a fascinating trend: $SHIB supply on exchanges has fallen by 0.51% since November 12, now at 7.85%! Less SHIB on exchanges generally means reduced selling pressure – setting the stage for potential gains.#Shibarium #ShibaArmy pic.twitter.com/zycIUOg8sV
— 山丨ㄥㄥ Trader_Kamikaze ???????? ???? (@trader_kamikaze) December 12, 2023
In addition to netflow increases, large holder inflows have jumped 430% over the past day according to Whale Alert transaction data. A single whale wallet received an inbound transfer of over 4 trillion SHIB worth $40 million at the time. While the purpose is unclear, signals point to potential OTC buy activity occurring off-exchange.
Notably, growing whale accumulation has occurred in tandem with erosion in SHIB’s price in recent days. This indicates large players likely see current prices as a longer-term buying opportunity to bolster positions. Research shows that whales often use market drawdowns to scoop up crypto assets at a discount, anticipating a rebound.
Beyond just whales, overall investor sentiment for SHIB may be weakening but remains relatively bullish on-chain. According to date from Shibburn, the daily burn rate of SHIB has spiked 49% over the past 24 hours, with 2.88 billion tokens removed from circulation. Higher burn rates often coincide with investor anticipation of a reversal.
Additionally, IntoTheBlock’s SHIB-specific Fear & Greed Index remains in neutral territory despite the downward price trajectory. This signals belief in a potential trend reversal could be mounting. Other analysts have also highlighted strengthening signals of bullish divergence on price charts.
If the accelerating accumulation from large SHIB holders is any indicator, prices could be positioned to bounce after the swift decline to multi-week lows. With investor sentiment hanging in neutral territory, bulls will look for whale buy signals to translate into a definitive trend change. The next few daily candles for SHIB could prove critical amidst the intensified battle between opposing investors.
