Shiba Inu (SHIB) experienced an 883% surge in outflows over the past week, according to IntoTheBlock data. This significant jump occurred between January 15 and January 16, with large investor SHIB outflows increasing from 647 billion to 1.11 trillion tokens. The dramatic shift has sparked widespread curiosity about the driving factors behind this trend.
Profit-Taking by Large Investors
The 883% rise in SHIB outflows is attributed to profit-taking and market rebalancing by major players. Some investors may have cashed out their SHIB holdings when its price dropped to $0.0000196 earlier this week.
This spike in outflows coincided with a daily price increase of approximately 10%, indicating strong buying demand in the market. Retail investors and smaller whales likely purchased SHIB at lower prices, driving the price up again.
Despite the significant outflows, Shiba Inu has shown impressive price resilience. Over the past 24 hours, SHIB surged from $0.000022 to $0.0000246 on the daily chart, marking an 8.78% gain. Over the past week, SHIB has risen by 14%, signaling a revival in market activity.
On-Chain Data Indicates Growth Potential
On-chain data reveals that large investor inflows to whale addresses increased by 177% last week. This suggests that some major wallets are still buying SHIB. Additionally, SHIB is trading near the 0.786 Fibonacci retracement level, a key support area for potential price recovery.
Analysts Maintain Bullish Outlook for Shiba Inu
Market analysts are optimistic about SHIB’s potential for further gains. CryptoELITE, a market commentator, predicts an 850% price increase if the token breaks its current pattern.
CryptoELITE: “If the token breaks its current model, we expect an 850% price increase.”
Similarly, analyst Alan Santana believes SHIB could reach $0.00023 by the end of the year.
Alan Santana: “It’s likely the token will hit this level within the year.”
Shiba Inu’s recent surge in outflows and increased buying activity have drawn attention. The combination of positive on-chain data and analyst projections suggests cautious optimism for SHIB’s future performance. Investors are encouraged to monitor market dynamics and technical indicators closely.
Dey There will continue to track these developments, providing updates on SHIB’s market trajectory.
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