Shiba Inu (SHIB) Netflow Skyrockets 5,277%—Is a Bull Run Inevitable?

This sudden uptick in large holder netflows has sparked speculation about a potential price reversal, raising questions about SHIB’s next move in the volatile crypto market.

According to on-chain data, SHIB’s large holder netflows spiked from 128.59 billion SHIB to 3.5 trillion SHIB on February 7. This significant increase suggests that major investors, commonly known as whales, are actively accumulating the token. A sustained rise in whale netflows is often seen as a bullish signal, indicating confidence in the asset’s future prospects.

Large holder inflows hit 3.8 trillion SHIB in 24 hours, soaring 892% this week. Source: IntoTheBlock

Supporting this trend, large holder inflows have surged to 3.8 trillion SHIB within the last 24 hours, marking an 892% increase over the week. Meanwhile, outflows from large holders have declined, suggesting that whales are deliberately holding onto their assets rather than offloading them.

Historically, spikes in large holder inflows coincide with price bottoms, as whales tend to buy in bulk following sharp declines. Given that SHIB recently hit a low of $0.00001160, investors are closely watching whether this accumulation could signal a broader price recovery.

Despite the downturn in the larger crypto market, SHIB has managed to snap its losing streak with a modest uptick in price. The token was rebounding from a low of $0.00001462 on Friday and was changing hands up 1.43% in the last 24 hours, trading at $0.00001535.

Shiba Inu (SHIB) is currently holding above the critical support at $0.000015. Source: Paper_Trader1775 on TradingView

This slight recovery, however, is taken with caution as market data indicates that the volume of trading in SHIB has fallen 15.59%, which means this recent uptick in price doesn’t have strong backing from active traders. Analysts believe that over 9.4 trillion SHIB committed in open interest will definitely need more significant action in terms of trading volume to push the price higher.

While whale activity suggests growing accumulation, short-term holders appear to be exiting the market. Recent data shows a decline in the number of SHIB investors who purchased within the last 30 days. This trend signals waning confidence among retail traders, which could limit the token’s immediate upside potential.

SHIB’s price-Daily Active Addresses (DAA) divergence has turned negative. Source: Santiment

Moreover, on-chain metrics from Santiment indicate that SHIB’s price-Daily Active Addresses (DAA) divergence has entered negative territory. This means that while SHIB’s price has seen slight gains, user engagement is not keeping pace—a bearish sign that could hinder a strong recovery.

Technical indicators further support this cautious outlook. The Moving Average Convergence Divergence (MACD) has dipped into the negative region, indicating that bearish momentum remains strong. Similarly, the Awesome Oscillator (AO) also reflects negative sentiment, suggesting that SHIB may struggle to break above resistance levels.

Despite the short-term price challenges, the Shiba Inu ecosystem keeps growing. This week, SHIB announced a strategic partnership with the UAE’s Ministry of Energy and Infrastructure to integrate blockchain technology into public services. It will improve efficiency, increase transparency, and enhance security by deploying the SHIB Layer-2 blockchain, Shibarium, as the backbone for government applications.

Also, the lead developer of Shiba Inu, Shytoshi Kusama, teased a huge announcement, further stoking speculation over new developments that could lead to further adoption of SHIB.

The current state of the market presents a mixed outlook for Shiba Inu. First, whale accumulation and ecosystem expansion indicate long-term optimism. Second, weak network engagement and declining short-term holder confidence pose challenges for sustained price growth.

Shiba Inu (SHIB) was trading at around $0.00001566, up 1.74% in the last 24 hours at press time. Source: Brave New Coin

If whale activity remains strong and trading volume picks up, SHIB could aim for a recovery toward the $0.00002 mark. However, if bearish momentum persists, the token might face further declines, potentially testing support at $0.000012.

For now, all eyes are on SHIB’s next moves as investors wait to see whether whale confidence translates into a broader market reversal.