According to U.Today, Shiba Inu (SHIB), a dog-themed cryptocurrency, has seen a significant 2,139% increase in large holder netflows. Despite this surge, the netflow for SHIB remains negative, indicating a complex market situation. This increase in large holder netflows coincides with SHIB's price being rejected at the resistance level of $0.0000263, leading to a decrease in price for the second consecutive day.
The Large Holders Netflow Indicator from IntoTheBlock provides insights into the changes in the positions of large investors, often referred to as 'whales'. It does this by estimating the number of inflows minus outflows for these addresses. A spike in netflow indicates accumulation by large holders, while a decrease suggests reduced positions or selling. Shiba Inu has also experienced inflows, with a 395% increase in large holder inflows. However, these inflows were outweighed by outflows, resulting in negative large holder netflows.
After a brief rally, Shiba Inu was unable to maintain its upward momentum and was rejected at $0.0000263, 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 acts as a psychological barrier in trading, allowing sell orders to accumulate as buying momentum decreases. SHIB's inability to surpass this threshold indicates strong selling pressure at that price point, leading to a temporary setback for bulls.
At the time of writing, SHIB was down 1.13% in the last 24 hours to $0.00002526. 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. Traders are also 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 short term.
