- SHIB declined by 9.76% over the past 24 hours, at press time.
- Shiba Inu whales were accumulating with whale activity hiking by 276.92%.
Over the past months, Shiba Inu’s [SHIB] whale activity has experienced a strong drop, reaching a three-month low.
However, the past day has seen whale activity surge, recording massive transactions and inflow.
Source: IntoTheBlock
Shiba Inu’s whale activity has surged by 276.92% over the past day, reaching a three-week high. This massive uptick implies that whales are back in the market and actively engaged with the network.
When large transactions surge, it suggests whales are either accumulating or distributing.
Source: IntoTheBlock
To determine whether it’s accumulation or distribution, AMBCrypto examined the large holders’ inflows and netflow. According to IntoTheBlock data, large holders’ inflow has increased by 204% to 904.22 billion SHIB tokens.
When large holders’ inflow rises, it implies massive capital inflow from whales to the asset. The growing whale activity has caused the memecoin’s trading volume to spike by 156% to $475.09 million.
This suggests that whales are actively accumulating SHIB, indicating a strong shift in market sentiment from large holders.
Source: IntoTheBlock
This shift in market sentiment is further evidenced by the rising large holder’s netflow. This shows that inflow has outweighed outflow, with netflow rising to 124.2 billion.
A rising netflow implies that whales are very bullish and are back in the market to accumulate the dip as they anticipate a trend reversal in the near term.
Any impact on SHIB’s price charts?
Notably, the rising whale accumulation offers hope for SHIB investors, as it could see the price recover in the near term. However, although large holders are back in the market, their impact is not yet felt.
As a result, the memecoin continues to trade within a descending triangle.
Source: TradingView
The downward momentum is relatively high, and Shiba Inu could see more losses on its price charts.
This downward momentum is evidenced by the fact that +DI of the Directional Movement Index (DMI) continued to decline, reaching a low of 7, while -DI continued to rise, sitting comfortably at 42, at press time.
When the DMI is set like this, it indicates that SHIB is seeing more losses than gains, and sellers are strong in the market.
This downward momentum is further validated by the declining Stoch, which has dropped to 17, while its signal line sits at 32.4. The setup confirms the possible continuation of the downtrend before another uptrend starts.
In conclusion, although whales are back in the market accumulating, their actions are not yet felt. Shiba Inu could see more losses, especially in the short term. A drop to $0.000012 can be observed if the current trend continues.
However, if the recent whale activity pays off, the memecoin could start recovering by first reclaiming $0.000014.
