Dog-themed cryptocurrency Shiba Inu (SHIB) has triggered a staggering 485% netflow spike on a seven-day basis, albeit a negative one, which adds an intriguing twist to the positive narrative.
However, in the last 24 hours, Shiba Inu has marked positive netflows, soaring from -97.45 billion SHIB to 379.61 billion SHIB.
The Large Holders Netflow Indicator from IntoTheBlock gives information about whale position changes. Positive netflow spikes might be interpreted as accumulation from large holders, while decreases point to reduced positions or selling.
Regardless of the implications, a surge in netflow might signal whale activity.
The rise in netflow at this moment remains significant as SHIB approaches a critical juncture in its price that might impact its short-term trajectory.
The cryptocurrency market has been closely watching Shiba Inu as it fights to keep its price above the daily Simple Moving Average (SMA) 50, a key barrier that has restrained its upward movement since mid-April.
For SHIB, the SMA 50 has acted as a resistance level, capping its price in a range and preventing a bullish breakout. Since mid-April, SHIB has attempted to breach this level multiple times, only to be driven back down, indicating market hesitation.
However, recent developments indicate a shift in the tide. SHIB’s price has now pierced through the daily SMA 50 barrier, signaling a potential shift in momentum.
Market sentiment has also played a crucial role in SHIB’s recent price action. Positive news regarding the progress toward the approval of U.S. Ethereum spot ETFs has contributed to a more optimistic outlook for cryptocurrencies, including SHIB. This sentiment reversal has provided the necessary impetus for SHIB to challenge and surpass the SMA 50.
As SHIB trades above the daily SMA 50, currently at $0.00002467, the market is watching to see if it can sustain this. A steady hold above the SMA 50 could pave the way for further recovery and potentially usher in a new bullish trend for SHIB.
Failure to hold above current levels, on the other hand, could lead to a price drop and further consolidation. At the time of writing, SHIB was up 0.07% in the last 24 hours to $0.00002561, per CoinMarketCap data.
Read the full article here
