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On-chain data confirms that large Shiba Inu whales are buying the ongoing dip, even as SHIB retests critical support levels.
For context, Shiba Inu (SHIB) recently retested the crucial support around $0.00002 when it collapsed to a floor price of $0.00002095 yesterday. However, the meme coin rebounded quickly, managing a 4.55% intraday gain to hold above $0.000022.
Despite retaining the $0.000022 region, Shiba Inu is still one of the assets most affected by the ongoing market collapse, down 16.59% in December and now sitting on the 15th position among the largest crypto assets. SHIB has also collapsed by more than 32% since Dec. 9.
Shiba Inu Net Inflow Spikes 7,140% Despite Price Drop
Nonetheless, this bearish phase has not impacted confidence among large whales. Data from IntoTheBlock, which defines these whales as wallets holding at least 0.1% of SHIB’s circulating supply, indicates that the tier of addresses have been buying large chunks of SHIB since Dec. 10.
These whales have mostly witnessed positive netflows during this period, but the latest data confirms that they boasted a net inflow of 799.32 billion SHIB worth over $17.5 million yesterday. This figure represents an 11-day peak in positive netflows into these addresses.
Further data scrutiny reveals that the addresses actually procured 1.21 trillion SHIB worth $26.6 million yesterday, but sold about 413 billion tokens ($9.1 billion), resulting in the net inflow of 799.32 billion SHIB. This represented a massive 7,140% increase from the previous day’s figure of 11.04 billion tokens.
Notably, throughout Q4 2024, net inflows to these addresses have outpaced outflows by nearly five times. The highest intraday net outflow from these addresses amounted to 951.84 billion SHIB on Nov. 6. However, the highest net inflow was 3.47 trillion tokens on Nov. 12, as SHIB retested the $0.000028 region.
The Crypto Basic called attention to some of these accumulation moves in previous times. Notably, in mid-October, a whale accumulated 83.3 billion SHIB tokens as the market aimed to rebound from a previous downtrend. A new whale procured 397 billion tokens in August.
SHIB Exchange Reserve Slumps
Data from CryptoQuant further confirms this accumulation spree. Particularly, Shiba Inu Exchange Reserve has witnessed a persistent decline since early December. Exchange reserves stood at 140.87 trillion SHIB as of Dec. 7 but have since dropped to the current figure of 135.74 trillion.
Meanwhile, Shiba Inu is now looking to defend a breakout above a months-long symmetrical triangle. SHIB broke above the triangle in early November but appears to be retesting the breakout. The bulls need to defend this retest, which would provide a healthy position for Shiba Inu to recover.
Shiba Inu currently trades for $0.00002233 at press time, up 3.81% this week. The asset must defend the Fib. 38.2% level at $0.00001942 to hold against any collapse back inside the triangle.
