Shiba Inu Whales had a 578% net-flow drop: Is it a Red-Flag?

Lavina Daryanani
Source: Bitcoinist

The crypto market has been trading in green over the past day. The collective rally registered by most top coins aided in dragging the aggregate market cap above the $1 trillion mark. While Bitcoin registered a single-digit daily gain, altcoins led by Ethereum noted double-digit gains. Shiba Inu, nonetheless, opted to tread on the first path and noted a 5.5% uptick in the said time period.

Are Shiba Inu Large HODLers’ flows fluctuating?

SHIB’s price has evidently been bi-directional over the past few weeks. Despite the daily rise noted, there was a minor pull pack of 0.54% noted on the hourly. There were similar green-red combinations on the weekly and monthly too.

Price fluctuations like these usually tend to garner a lot of whale traction. Such participants usually buy SHIB tokens in large quantities whenever prices drop, and when green numbers start flashing, they gradually start selling and relishing gains.

Source: Messari

SHIB’s price has, notably, risen by 13% over the past month. In the same period, nonetheless, large HODLers netflow has dipped by 578%. Conversely, on the weekly window, with the 6% price dip, the netflows have noted a 73% incline.

However, when the chart below is keenly observed, it can be noted that a massive drops, like that of the 578% one, have not necessarily triggered the flows to fall into the negative territory. They’ve mostly been treading on the border-line, indicating that no collective dumping has materialized in the recent days.

Source: ITB

At press time, the large HODLers’ netflow depicted a positive value of 272.86 billion SHIB tokens, implying that the whale-purchase spree is still on. In fact, as reported yesterday, ETH whales had quite recently purchased a whooping half-a-trillion SHIB tokens in a span of merely a day, justifying the said narrative.

Read More: ETH Whales Purchase ‘Half A Trillion’ Shiba Inu Tokens in 24 Hours

So, with large HODLers/whales seemingly not in the mood to empty their bags, SHIB would likely be able to hold onto its current price for a while. Its directional bias, however, will continue to remain closely-knit to that of Bitcoin’s, for the two cryptos share a 30-day high correlation of 93%. So a change in trend in the broader market would invalidate the afore-discussed thesis.

Source: ITB