Dog-themed cryptocurrency Shiba Inu (SHIB) has triggered a 2,139% increase in large holder netflows. However, despite the surge, the large holder netflow for SHIB remains negative, which has various implications.
The surge in large holder netflows coincides with SHIB being rejected at the resistance level of $0.0000263, with the price decreasing for the second day in a row.
The Large Holders Netflow Indicator from IntoTheBlock provides insight into the change in the positions of whales and investors by estimating the number of inflows minus outflows for these addresses. Spikes in netflow indicate accumulation by large holders, or whales, and decreases indicate reduced positions, or selling.
Shiba Inu has also had inflows, with a 395% increase in large holder inflows; however, the inflows were outweighed by outflows, leading to negative large holder net flows.
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After a brief rally, Shiba Inu was unable to maintain its upward momentum and was rejected at $0.0000263, which emerged as a significant barrier for SHIB's price. This failure to break through the resistance level led to increased selling pressure from large holders.
The resistance level serves as a psychological barrier in trading, allowing sell orders to accrue as buying momentum dwindles. SHIB's inability to surpass this threshold indicates strong selling pressure at that price point, leading to a temporary setback for bulls.
SHIB/USD Daily Chart, Courtesy: TradingView
SHIB was down 1.13% in the last 24 hours to $0.00002526 at the time of writing. For SHIB to regain its upward momentum, it will need to overcome the current selling pressure and establish support above the critical resistance level. Broader crypto market trends might also influence SHIB’s performance. Bullish market sentiment could support SHIB’s recovery.
If the price recovers past $0.0000263, Shiba Inu will face its next significant hurdle around $0.000030. Meanwhile, traders are keeping an eye on the daily SMA 50 at around $0.00002465 to see if it will serve as an intermediate support for SHIB prices in the very short term.
