Shiba Inu, despite the prevailing bearish trend, has recently experienced a bullish return, primarily due to the increased adoption of the Shibarium Layer 2 network. This time, it is the large holders of Shiba Inu tokens driving this upward momentum. According to IntoTheBlock, a leading on-chain data tracker, the net flow of Shiba Inu tokens held by large wallets has skyrocketed by over 10 times. This significant rise in net flow indicates a strong accumulation of Shiba Inu tokens by these large holders.
Specifically, the net flow of these large wallets has surged by an astonishing 1079% since December 10. The total net flow recorded for these wallets amounted to a staggering 4.68 trillion SHIB. To put this into perspective, the numbers from the previous days indicated a net flow of just under 287 billion SHIB. This drastic increase in net flows can be attributed to the strategy these whales have adopted to take advantage of the low SHIB prices prevailing in the market.
During the initial days when the SHIB price was still trading above $0.00001, the net flows of these large accounts were under 287 billion. However, as the SHIB price began to decline, the net flows of these wallets started to rise. The more the price dropped, the more tokens the whales accumulated in their wallets. This accumulation pattern clearly indicates a strong belief among these large holders that the price of SHIB is likely to rebound in the near future.
Positive Signs Amidst Price Decline
Although the decline in SHIB prices has understandably diminished investors’ enthusiasm to some extent, there are positive signs emerging that hint at a potential turnaround. One such encouraging sign is the increase in the SHIB burn rate observed over the last 24 hours. Data from Shibburn reveals a 49% surge in the burn rate of the meme coin during this period, resulting in the burning of 2.88 billion tokens by the community. Typically, a rise in the burn rate indicates investor expectations of a turning point in the price.
Additionally, the Shiba Inu Fear & Greed Index has managed to maintain a neutral level. This indicates that there is still a considerable level of bullish sentiment prevailing in the market, even after the price decline. As long as key metrics continue to improve, there is a strong possibility of a reversal in the current market trend and a potential recovery in the price of Shiba Inu tokens.
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The recent bullish return of Shiba Inu, amidst an overall bearish market trend, can be attributed to the increasing adoption of the Shibarium Layer 2 network and the active engagement of large holders. These large holders have demonstrated a strong intent to accumulate SHIB tokens in anticipation of a price rebound. Additionally, positive signs such as the increase in the SHIB burn rate and the maintenance of a neutral Fear & Greed Index level indicate the potential for a turnaround in the near future. However, it is crucial for investors to exercise caution and make informed decisions, considering the inherent risks associated with cryptocurrency investments.