According to IntoTheBlock data, dog-themed cryptocurrency Shiba Inu is seeing a staggering 671% surge in large holder inflows, a metric that tracks the funds going into whale addresses.
A surge in large holder inflows might indicate that considerable buying activity is taking place. This is the case because many of these addresses buy on centralized exchanges and subsequently transfer their purchases to cold storage. Spikes in large holder inflows might also indicate price bottoms because these addresses prefer to buy in large quantities after significant corrections.
The surge in large holder inflows comes at a time when SHIB's price is teetering on the edge of a major breakout. At the time of writing, SHIB was up 8.36% in the last 24 hours to $0.00001548. Shiba Inu was also up 17% weekly.
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The broader cryptocurrency market rose drawing from the Fed's rate cut signals, with many digital assets seeing gains. Shiba Inu has benefited from this overall positive sentiment, posting gains in the last 24 hours.
SHIB price on verge of major breakout
Shiba Inu has been trading within a range in recent weeks, building up pressure that many analysts believe could soon be released in the form of a major price breakout. The recent surge in inflows has only added fuel to this speculation, with the market eagerly anticipating a sharp upward move.
SHIB/USD Daily Chart, Courtesy: TradingView
Technical analysts are closely watching key resistance levels, which, if breached, could trigger a wave of buying and propel SHIB’s price higher.
In this case, the daily SMA 50 currently at $0.00001561, which has held SHIB back since mid-April, remains a crucial level to watch out for.
Shiba Inu is once again challenging this key level following yesterday's surge, with the price touching highs of $0.00001533 in today's trading session. In the event of a sustained breach, Shiba Inu might aim for the daily SMA 200 at $0.00002 and $0.00003 levels, respectively.
As Shiba Inu teeters on the edge of a major price breakout, the coming days might be crucial in determining the token’s near-term trajectory. If SHIB bulls fail to sustain a price breakout, support is envisaged at $0.000010.
