Dog-themed cryptocurrency Shiba Inu (SHIB) has seen an increase in outflows, sparking speculation on what might be driving this trend.
According to data from IntoTheBlock, SHIB outflows have skyrocketed by 883% in a week. This significant movement saw large holder outflows increase from 647 billion SHIB on Jan. 15 to 1.11 trillion SHIB on Jan. 16. The surge in outflows during the week coincides with a major sell-off, which saw SHIB dip to lows of $0.0000196 as investors took profits.
However, the increase in outflows over the last 24 hours is particularly intriguing as it coincides with a nearly 10% price increase for SHIB within the same time frame.
Typically, outflows might be associated with profit-taking or funds' reshuffling by large holders, yet the price surge in the last 24 hours suggests that strong demand might be absorbing these sell-offs.
Despite increased outflows, the jump in the Shiba Inu price suggests the presence of strong buying pressure from other market participants, potentially retail investors or smaller whales moving in to fill the gap. In this context, Shiba Inu's large holder inflows, which refer to funds entering whale addresses, have surged 177% since the start of the week.
SHIB price action
Shiba Inu experienced a significant jump in today's trading session, climbing from lows of $0.000022 and $0.0000246 and forming a large green daily candlestick in the process.
At the time of writing, SHIB was up 8.78% in the last 24 hours to $0.00002419, reflecting the general crypto market rebound following a large sell-off earlier this week. The dog-themed cryptocurrency is also up 14% weekly. Key measures such as trading volume and large holder transaction volumes, which indicate whale activity, have also increased, supporting the asset's upward trend.
Shiba Inu began to rise after striking support at a low of $0.0000196 on Jan. 13 and is now on track to see three out of four days in the green.
Moving ahead, a significant break over the daily SMA 50 at $0.00002482 could signal a new bullish rise for Shiba Inu, with targets of $0.00003 and $0.000033, or possibly higher. If prices fall, the daily SMA 200 at $0.000019 is expected to provide significant support. The daily RSI over the midpoint shows a small advantage for the bulls.
