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Shiba Inu might be undergoing a bearish correction, but on-chain data suggests some good news and hints at something positive coming in the next few days. Particularly, on-chain data shows that the activity among large holders has spiked positively in the past 24 hours. This data is reflected through the large holder netflow on IntoTheBlock (ITB), which suggests a 45% increase in the past 24 hours and a 3,840% increase in the past 48 hours. This on-chain data has pointed to a conflicting dynamic among Shiba Inu whales and investors.
SHIB Whales Back In Action
IntoTheBlock’s large holder inflow, outflow, and netflow data metrics offer some of the most insightful views into whale activity and their sentiment towards cryptocurrency. In the case of Shiba Inu, ITB’s large holder netflow has seen a dramatic surge in the past 48 hours after an initial drop after the month started. Particularly, the netflow into large holder addresses was 322.7 billion SHIB tokens on October 1, a 2,944% increase from the negative -10.96 billion SHIB netflow witnessed in the previous days.
This sharp reversal suggests a notable shift from outflows to inflows into whale addresses. When inflows exceed outflows, the netflow rises. This pattern is often seen as a bullish indicator for the cryptocurrency, as it suggests that whales are adopting accumulation strategies.
Interestingly, the whales continued on this activity run into the last 24 hours to increase the netflow to 420.77 billion SHIB. This reading translates to a 45% increase from the previous day and a larger 3,840% increase in 48 hours.
The SHIB whale accumulation strategy is evident through the main inflow data, which reveals an inflow of 3.12 trillion SHIB into whale wallets during the time in consideration, compared to 2.65 trillion SHIB in outflows.
Shiba Inu Price Outlook: Whales Diving In
The SHIB price broke out of a six-month-long downtrend in September. Particularly, Shiba Inu registered a 63% increase in ten days, which saw its price go from a low of $0.00001304 on September 18 until it reached a three-month high of $0.00002141 on September 28. Since then, Shiba Inu has corrected by a massive 24%, peaking yesterday at a low of 0.00001606. However, the accumulation from the whales and other buyers has largely prevented more losses, and the meme coin has been able to prop up by 3%, and the meme coin is now trading at 0.00001646.
Current price action looks like the SHIB bulls have established support at $0.00001609, as they have been able to defend the correction multiple times at this level since October 1. Despite the correction, SHShiba InuIB remains relatively in a good position for another run-up. Furthermore, it seems some Shiba Inu whales are taking advantage of the price declines to increase their holdings in anticipation of a price run in October.
Featured image created with Dall.E, chart from Tradingview.com
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