Shiba Inu, despite the prevailing bearish trend in the market, has been experiencing a bullish return, thanks to the growing adoption of the Shibarium Layer 2 network. Notably, it is the large holders who are spearheading this upward trajectory. Recent on-chain data from IntoTheBlock reveals a remarkable surge in positive net flows by these large holders, with an increase of over 10 times. Starting from December 10, the net flow of Shiba Inu large holders witnessed a staggering 1079% surge. In total, these large wallets accumulated a massive 4.68 trillion SHIB, in stark contrast to the previous days’ net flow of just under 287 billion SHIB. This surge in net flows can be attributed to the whales’ intentions to capitalize on the low SHIB prices.
Accumulation Strategy: Taking Advantage of Low Prices
As the SHIB price gradually declined, the net flows of these large accounts began to soar. The logical explanation behind this accumulation strategy is the whales’ belief that the price is primed for a rebound. Initially, when the SHIB price was still trading above $0.00001, the net flows remained below 287 billion. However, as the price dropped, the whales seized the opportunity to add more tokens into their wallets. This strategic move clearly demonstrates their intent to accumulate tokens and indicates their confidence in an imminent price recovery.
SHIB price falls below $0.00001 | Source: SHIBUSD on Tradingview.com
Renewed Bullishness Supported by Metrics
While the declining price may have dampened investors’ optimism to some extent, this appears to be short-lived as various metrics are now pointing towards an upward turn. The first notable metric is the SHIB burn rate, which has experienced a significant increase in the last 24 hours. Shibburn data reports a 49% surge in the meme coin’s burn rate, with a total of 2.88 billion tokens burned by the community during this period. Typically, such a surge in burn rate indicates investors’ anticipation of a turning point in the price.
Furthermore, the Shiba Inu Fear & Greed Index has managed to maintain a neutral level. This indicates that there is still a significant level of bullish sentiment prevailing even after the price decline. As long as these metrics continue to show improvement, it is highly plausible that a recovery may be on the horizon.
Shiba Inu’s recent bullish return has been primarily driven by large holders who have significantly increased their positive net flows. Despite the decline in price, these whales have strategically accumulated tokens with the belief that a price rebound is imminent. The surge in the SHIB burn rate and the maintenance of a neutral level in the Fear & Greed Index further support the notion of renewed bullishness. However, it is crucial to remember that investing carries inherent risks, and any decision should be made after conducting thorough research.