A fascinating twist to the story is that the dog-themed cryptocurrency Shiba Inu (SHIB) has caused an astounding 485% netflow surge over the course of seven days—albeit a negative one.
Shiba Inu, on the other hand, has seen positive netflows during the last day, rising from -97.45 billion SHIB to 379.61 billion SHIB.
Changes in whale position are reported by IntoTheBlock’s Large Holders Netflow Indicator. Increases in netflow might be explained as significant investors building up their holdings, while reductions could indicate selling or reducing shares.
Whatever the consequences, an increase in netflow might be an indication of whale activity.
The increase in netflow at this time is nonetheless noteworthy since SHIB is getting close to a price turning point that might affect its short-term trajectory.
Shiba Inu is battling to maintain its price above the daily Simple Moving Average (SMA) 50, a significant barrier that has been limiting its upward movement since mid-April. The cryptocurrency market has been keenly monitoring the company’s progress.
SHIB’s price has been capped in a range by the SMA 50, which has functioned as a resistance level, blocking a positive breakthrough. SHIB has made many attempts since mid-April to break above this level, but each time it has been forced back down, suggesting market hesitancy.
Recent events, nevertheless, suggest that the tide is turning. The price of SHIB has now broken above the daily SMA 50 level, indicating a possible change in momentum.
The recent price behaviour of SHIB has also been significantly influenced by market sentiment. Good news about the US government’s efforts to approve Ethereum spot ETFs has made the outlook for cryptocurrencies—including SHIB—more positive. This turnaround of mood has given SHIB the push it needs to attack and overcome the SMA 50.
The market is observing SHIB to see whether it can maintain its current level of trading above the daily SMA 50, which is now at $0.00002467. Maintaining a stable position above the SMA 50 may facilitate more gains and maybe initiate a fresh bullish trend for SHIB.
On the other side, if present levels are not maintained, there may be a price decline and more consolidation. According to CoinMarketCap statistics, SHIB was up 0.07% in the previous day at $0.00002561, at the time of writing.
