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Dog-themed cryptocurrency Shiba Inu (SHIB) shows signs of rebounding following a sharp sell-off in Monday’s trading session.
SHIB has recovered 7% in the last 24 hours, coinciding with a massive 553% increase in large holder inflows, which refers to funds entering into whale addresses. According to IntoTheBlock data, Shiba Inu saw a sharp spike in large holder inflows, skyrocketing from 1.27 trillion SHIB on Feb. 2 to 6.51 trillion SHIB on Feb. 3.
The surge in large holder inflows suggests that whales might be moving funds into SHIB, possibly in anticipation of dip buying. This comes amid the recent crypto market sell-off, which saw meme coins lose considerable value.
Bitcoin fell below $91,000 in the early hours of Monday, causing fear and resulting in large liquidations at the highest levels in six months. Open interest, which represents futures contracts on exchanges, consequently fell to its lowest level since Nov. 11, 2024.
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The crypto market’s total value slid by about $360 billion at one point on Monday, according to CoinGecko data. Large dips, while seemingly paradoxical, are really beneficial to cryptocurrency markets in the long run. Drops help to decrease market excess, flush out weak hands and create a more stable platform for future price increases.
Large sell-offs from liquidations frequently drive cryptocurrency markets to bounce because they produce a cascade of forced selling, followed by a sudden lack of selling pressure and an infusion of opportunistic buyers.
What’s next for Shiba Inu?
Shiba Inu fell drastically yesterday, hitting lows of $0.0000116 after reaching highs of $0.0000169. At the time of writing, SHIB had marginally recovered and was up 6% in the last 24 hours to $0.00001542.
If SHIB sustains its rebound, a break above its daily moving averages of 50 and 200 at $0.00001927 and $0.00002119 might lead to more gains. However, if selling pressure returns, SHIB may need to defend the support near $0.000011 to avoid more losses.
With large holder inflows skyrocketing, SHIB holders are keeping a careful eye on whether the current rebound can last much longer. Will this lead to a larger breakout or just a brief rebound? Time will tell.
Source: https://u.today/shiba-inu-inflows-skyrockets-553-as-shib-price-rebounds-7