On-chain data shows the large Shiba Inu holders have accumulated a combined $100 million in SHIB during the past week.
Large Shiba Inu Investors Have Been Participating In Accumulation Recently
According to data from the market intelligence platform IntoTheBlock, the large SHIB holders have gone on a buying spree the past week. The “large holders” here refer to the combined cohort of addresses holding between 0.1% and 1% of the circulating supply and those holding above 1% of the supply.
The former group comprises the sizeable holders that IntoTheBlock refers to as “investors.” At the same time, the latter cohort includes the whales, the largest and most powerful entities on the network.
As the large holders carry a significant part of the total supply in their wallets, they can have some noticeable influence in the market. Thus, their behavior can be something to watch for.
To track the behavior of these sizeable investors, the analytics platform has used the “netflow” metric, which measures the net amount of Shiba Inu entering or moving out of the wallets of this cohort.
When the netflow has a positive value, it means that a net number of coins is being transferred into the wallets of these large holders. Such a trend indicates that these investors are accumulating, which may be bullish for the memecoin’s price.
On the other hand, values under zero suggest a net amount of the cryptocurrency is leaving the addresses of this cohort, a possible indication that these investors are participating in selling. Naturally, this could have bearish effects on the asset’s value.
Now, here is a chart that shows the trend in the large holders netflow for Shiba Inu over the past week or so:
Looks like the value of the metric has been above the zero mark in recent days | Source: IntoTheBlock on X
As displayed in the above graph, the Shiba Inu large holders netflow has only registered positive values during the last week, implying that these investors have been expanding their holdings.
In total, the large holders have accumulated $100 million worth of the cryptocurrency in this period, which isn’t large but is a notable amount. More importantly, it means that these investors have at least not been participating in a net amount of selling.
Shiba Inu has been having a bad time recently as the memecoin’s price has been heading down. However, this net accumulation from the whales and other sizeable investors could be one of the first positive signs of a potential turnaround for the asset, as it shows that these holders believe the current price lows may be offering a worthy buying opportunity.
SHIB Price On The Decline
Shiba Inu has taken another 7% hit the past week, as its price is now trading around the $0.00000767 mark. It remains to be seen whether the asset’s fates would change shortly after the accumulation.
The value of the asset seems to have been going down recently | Source: SHIBUSD on TradingView
Featured image from Ferhat Deniz Fors on Unsplash.com, charts from TradingView.com, IntoTheBlock.com