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Dog-themed cryptocurrency Shiba Inu has triggered a 570% surge in large-holder inflows, which track the funds going into whale addresses. Shiba Inu large holder inflows jumped from 404.81 billion SHIB on April 11 to 2.66 trillion SHIB on April 12, per IntoTheBlock data.
The surge in large holders’ inflow coincides with a surge in a key metric that highlights whale activity. Shiba Inu’s large transaction volume rose 276.25% in the last 24 hours, with 8.63 trillion SHIB transferred in large transactions. This amounted to $212.56 million in monetary terms. Spikes in large transaction volumes point to high activity among institutional players or whales.
There are a couple of scenarios that could explain the surge in large-holder inflows. One possibility is an increase in buying activity from whales or large holders, who may be acquiring SHIB tokens on exchanges before transferring them to cold storage.
Another scenario is that such spikes in inflow often precede price bottoms, indicating that whales are taking advantage of the current market correction to acquire SHIB at a discount. This could indicate that they anticipate a price bounce and are strategically planning for future gains.
The timing of the surge in key whale metrics is significant as the market is experiencing crypto carnage, with large losses across the board.
SHIB price drops 12%
Cryptocurrencies fell toward the weekend as risk-off sentiment spread from traditional markets to digital assets. An unexpectedly high CPI figure shattered hopes for Fed rate cuts this year, raising concerns that progress in curbing rising prices may be slowing.
Bitcoin (BTC) and most cryptocurrencies are currently trading in losses as volatility returns to the crypto market.
Shiba Inu also fell, dropping to a low of $0.00002126 on Friday before recovering marginally. At the time of writing, SHIB was still down 11.16% in the previous 24 hours at $0.0000244.
If declines persist, SHIB would find its next support in the $0.000019 to $0.000023 range, where 52,650 addresses bought 44.79 trillion SHIB at an average price of $0.000022.
In the case of a price recovery, SHIB would confront its next resistance at the $0.000026 to $0.000030 range, where 100,700 addresses bought 51.68 trillion SHIB at an average price of $0.000028.
