According to U.Today, the dog-themed cryptocurrency Shiba Inu (SHIB) has experienced a remarkable 485% netflow spike over the past week. Despite this being a negative spike, it adds an interesting element to the overall positive narrative. In the last 24 hours, Shiba Inu has seen positive netflows, jumping from -97.45 billion SHIB to 379.61 billion SHIB. The Large Holders Netflow Indicator from IntoTheBlock provides insights into changes in whale positions. Positive netflow spikes could be seen as accumulation from large holders, while decreases suggest reduced positions or selling.
Regardless of the implications, a surge in netflow could indicate whale activity. The current rise in netflow is significant as SHIB approaches a crucial point in its price that could affect its short-term trajectory. The cryptocurrency market has been closely monitoring Shiba Inu as it strives to maintain its price above the daily Simple Moving Average (SMA) 50, a key barrier that has hindered its upward movement since mid-April. For SHIB, the SMA 50 has acted as a resistance level, limiting its price within a range and preventing a bullish breakout.
Since mid-April, SHIB has tried to breach this level multiple times, only to be pushed back down, suggesting market hesitation. However, recent developments indicate a change in the tide. SHIB's price has now broken through the daily SMA 50 barrier, signaling a potential shift in momentum. Market sentiment has also played a key role in SHIB's recent price action. Positive news about the progress toward the approval of U.S. Ethereum spot ETFs has led to a more optimistic outlook for cryptocurrencies, including SHIB. This change in sentiment has given SHIB the necessary push to challenge and surpass the SMA 50.
As SHIB trades above the daily SMA 50, currently at $0.00002467, the market is watching to see if it can sustain this. A steady hold above the SMA 50 could set the stage for further recovery and potentially initiate a new bullish trend for SHIB. Failure to maintain above current levels, however, could result in a price drop and further consolidation. At the time of writing, SHIB was up 0.07% in the last 24 hours to $0.00002561, according to CoinMarketCap data.