Shiba Inu has been defying the bearish trend as of late, and it appears that the increased adoption of the Shibarium Layer 2 network has played a significant role in this bullish return. However, it is the large holders of Shiba Inu who are taking the spotlight this time around. These whales have seen a remarkable surge in their positive net flows, with an increase of more than 10 times.
According to IntoTheBlock, a renowned on-chain data tracker, the net flow of Shiba Inu large holders has experienced a substantial rise. Starting from December 10th, these large wallets have witnessed an outstanding 1079% increase in net flow. In total, the net flow of these significant wallets reached a staggering 4.68 trillion SHIB. This is a stark contrast to the previous days’ numbers, which recorded net flows just below the 287 billion SHIB mark.
Capitalizing on Low SHIB Prices
The surge in net flows can be attributed to the logical intent of these large holders to take advantage of the low SHIB prices. Initially, on December 10th, when the SHIB price was still trading above $0.00001, the net flows remained below 287 billion. However, as the SHIB price began to drop, the net flows of these large accounts skyrocketed. It is evident that the further the price dropped, the more these whales added to their wallets. This accumulation of tokens signifies their belief that the price is poised to bounce back in the near future.
Turning the Tide: Signs of Recovery
The decline in price undoubtedly affected investors’ bullish sentiments to a certain extent. However, this downturn in optimism appears to be short-lived, especially as certain metrics begin to show signs of an impending recovery. One such metric is the SHIB burn rate, which has witnessed an uptick in the last 24 hours.
Data from Shibburn reveals a remarkable 49% increase in the burn rate of the meme coin during this period, with a total of 2.88 billion tokens burned by the community. Typically, this surge in burning occurs when investors anticipate a turning point in the price. Therefore, it can be interpreted as a positive indicator that investors believe the price will soon reverse its course.
Furthermore, the Shiba Inu Fear & Greed Index has managed to maintain a neutral level, suggesting that a significant level of bullishness still exists even after the price decline. As long as these metrics continue to improve, there is a possibility of a turnback toward recovery in the near future.
Shiba Inu has demonstrated resilience in the face of a bearish market, primarily due to the increased adoption of the Shibarium Layer 2 network. The recent surge in net flows from large holders indicates their confidence in the future price movement and their strategic accumulation of SHIB. Additionally, the uptick in the burn rate and the maintenance of a neutral Fear & Greed Index further supports the potential for a comeback.
However, it is crucial to note that the cryptocurrency market is inherently volatile, and investing carries its own risks. This article has been provided for educational purposes only and should not be taken as financial advice. It is always recommended to conduct thorough research and exercise caution before making any investment decisions.
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