Shiba Inu (SHIB) has seen its outflows skyrocket by 883% within the past week. According to data from IntoTheBlock, the substantial increase in outflows occurred between January 15 and January 16, with large holder outflows rising from 647 billion SHIB to 1.11 trillion SHIB. This trend has sparked widespread curiosity about the driving factors behind this massive movement.
Shiba Inu Outflows Surge Over 800%
The over 883% increase in SHIB outflows seems to be related to trades due to profit taking and market adjustment by the big players. Some investors may have cashed out some of their SHIB tokens when its price dropped to $0.0000196 earlier this week.
However, the situation became more interesting when the outflows spike at the same time as the price jump of almost 10% within one day.
This means that while some investors were offloading their stakes, there was a great deal of buying interest in the market which soaked up the sell orders. This could be because retail investors or so called smaller whales have bought SHIB at cheaper prices and then the price went up.
Shiba Inu Price Recovers with Increased Buying Activity
While there were significant outflows, Shiba Inu has made an impressive price reversal. In the last day alone, SHIB has surged from $0.000022 to $0.0000246 on the daily chart which gives it a large green candlestick.
SHIB price is up 8.78% in the last 24 hours and has risen by 14% in the past week, suggesting that the market has woken up again.
Some of the other metrics like trading volume and volume of transactions by large shareholders have also gone up. This means that the buying pressure has either equaled or has been stronger than the selling pressure during this period. There has been continuous buying pressure for SHIB, meaning that the demand for the token has not waned even with the increase in outflows.
On-Chain Data Suggests a Potential for Continued Growth
According to on-chain data, large holder inflows, which concern the funds transferred to whale addresses, have increased by 177% over the past week. This trend suggests that some of the bigger wallets may still be buying SHIB.
In addition, SHIB has been trading around the Fibonacci retrace level of 0.786, which is a big support zone for price bounce-back.
If the price of Shiba Inu goes above the crucial level of $0.00003, market strategists believe that the cryptocurrency could experience an incoming spike. According to the analysts, the price of SHIB has been forming a symmetrical triangle pattern over the last six months. If the price will break this pattern, which is rather probable, a sharp price increase will follow.
Analysts Predict a Bullish Run for Shiba Inu
Some market analysts believe SHIB price could experience substantial gains soon. CryptoELITE, a market commentator, predicts an 850% price increase if the token breaks out of its current pattern. According to their analysis, SHIB could target a price of $0.00023 during its next major rally.
Another expert, Alan Santana, has also set a price target of $0.00023 for SHIB, stating that the token is likely to achieve this level within the year. These optimistic projections are based on SHIB’s current price structure and strong market momentum.
At the time of writing, Shiba Inu price is trading at $0.00002413, with bullish sentiment dominating the market.
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