The recent bearish trend in the crypto market doesn’t seem to affect Shiba Inu (SHIB) as much, thanks to the increased adoption of the Shibarium Layer 2 network. In fact, it is the large holders of SHIB who are driving the bullish return. According to on-chain data tracker IntoTheBlock, the net flow of Shiba Inu large holders has seen a significant rise, increasing by more than 10 times.
Starting from December 10, these large wallets experienced a remarkable 1079% rise in net flows, amounting to a whopping 4.68 trillion SHIB. This is a significant increase compared to the previous days, where the net flows were just under 287 billion SHIB. The surge in net flows can be attributed to these whales taking advantage of the lower SHIB prices. As the price of SHIB started to drop, the net flows of these large accounts began to rise. The whales seized the opportunity to accumulate more tokens, anticipating a bounce back in the price.
Impact of Price Decline and Positive Metrics
The decline in SHIB’s price understandably dampened investors’ bullish sentiment. However, this seems to be short-lived as several metrics suggest a potential upside. One of these metrics is the SHIB burn rate, which has seen an uptick in the past 24 hours. Shibburn data reveals a 49% increase in the burn rate, with a total of 2.88 billion tokens burned by the community. This increased burn rate often indicates investor expectations of a turning point in the price.
Additionally, the Shiba Inu Fear & Greed Index has managed to maintain a neutral level. This indicates that there is still a good level of bullishness among investors despite the price decline. If these metrics continue to improve, there could be a turnaround towards recovery in the near future.
Considerations for Investors
While the recent developments in SHIB may instill optimism among investors, it is important to approach the market with caution. The article serves as educational material and does not reflect the opinions of NewsBTC regarding investment decisions. Investing in cryptocurrencies carries inherent risks, and it is crucial to conduct thorough research before making any investment decisions.
As with any investment, it is essential to carefully analyze market trends, evaluate the potential risks, and determine one’s risk appetite. The increased net flows and positive metrics mentioned should be taken into account, but one should also consider other factors that may impact the price of SHIB in the long run.
Despite the bearish trend in the overall crypto market, Shiba Inu (SHIB) has shown resilience with the help of its growing adoption and large holders. The increased net flows by these large wallets highlight their confidence in the potential rebound of SHIB’s price. The uptick in the SHIB burn rate and the neutral level of the Fear & Greed Index further suggest a positive outlook for the meme coin.
However, investors should exercise caution and conduct thorough research before making any investment decisions. It is important to weigh the potential risks and make informed choices based on one’s individual circumstances and risk tolerance. The market remains highly volatile, and diligent analysis is crucial to navigate the crypto landscape successfully.