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Dog-Themed Cryptocurrency Shiba Inu (SHIB) has seen an increase in capital outflows, sparking speculation about the possible causes of this trend.
According to data since IntoTheBlock, SHIB releases skyrocketed 883% in one week. This significant move saw capital outflows from large holders increase from 647 billion SHIB on January 15 to 1.11 trillion SHIB on January 16. The increase in outflows during the week coincides with a sell-off, which saw SHIB fall to a low of $0.0000196 as investors took profits.
However, the increase in outflows over the past 24 hours is particularly intriguing as it coincides with a nearly 10% price increase in SHIB over the same period.
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Typically, capital outflows can be associated with profit-taking or cash reshuffling by large holders, but the surge in prices over the past 24 hours suggests strong demand could absorb these sales.
Despite the increase in capital outflows, the rise in Shiba Inu price suggests the presence of strong buying pressure from other market participants, potentially from retail investors or small whales coming in to fill the void . Against this backdrop, Shiba Inu large holder inflows, which refers to funds flowing into whale addresses, have jumped 177% since the start of the week.
SHIB Price Action
Shiba Inu saw a significant jump during today’s trading session from the lows of $0.000022 to $0.0000246 and thus forming a large green daily candlestick.
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At the time of writing, SHIB was up 8.78% over the past 24 hours to $0.00002419, reflecting the crypto market’s general rebound after a sell-off earlier this week. The dog-themed cryptocurrency is also up 14% weekly. Key metrics such as trading volume and large holder trading volumes, which indicate whale activity, have also increased, supporting the asset’s upward trend.
Shiba Inu began to rise after reaching support at a low of $0.0000196 on January 13 and is now on track to see three out of four days in the green.
Looking ahead, a significant break above the daily 50 SMA at $0.00002482 could signal further upside for Shiba Inu, with targets of $0.00003 and $0.000033, or even higher. If prices decline, the daily 200 SMA at $0.000019 should provide significant support. The daily RSI above the midpoint shows a slight advantage for the bulls.