13 December 2023
Shiba Inu has been going against the bearish trend recently, especially with the increased adoption of the Shibarium Layer 2 network. This time around, it is large holders who are driving the bullish return. Specifically, these large holders have increased their positive net flows by more than 10x.
Shiba Inu Large Holder Netflow Jumps 1079%
According to the on-chain data tracker IntoTheBlock, the Shiba Inu large holder net flow has seen a significant rise. These large wallets saw their net flow ( the total difference between inflows and outflows) rise an outstanding 1079% starting from December 10.
In total, the net flow of these large wallets came out to a whopping 4.68 trillion SHIB. Now, this is important when placed in comparison to the numbers from the previous days which the tracker shows to be just under the 287 billion SHIB mark.
A logical explanation for this massive uptick in net flows is that these whales are looking to take advantage of the low SHIB prices. On December 10, the SHIB price was still trading above $0.00001, which is when the net flows were under 287 billion.
However, as the SHIB price began to drop, the net flows of these large accounts began to rise. The further the price dropped, the more the whales added to their wallets. This shows a clear intent to accumulate tokens with the belief that the price is poised to bounce back again.
SHIB Investor Sentiment Turning Bullish
The decline in price has understandably eroded investors’ bullishness to a certain degree. But this seems to be short-lived especially as metrics begin to turn toward the upside. The first of these is the SHIB burn rate seeing an uptick in the last day.
Data from Shibburn highlights a 49% increase in the burn rate of the meme coin over the last 24 hours. This comes as a total of 2.88 billion tokens were burned by the community at this time. Usually, this happens as investors expect a turning point in the price.
Additionally, the Shiba Inu Fear & Greed Index has also managed to maintain a neutral level. This suggests that there is still a good level of bullishness left after the price decline. As long as metrics continue to improve, there could be a turnback toward recovery soon.