Whales are returning to crypto markets
The recovery of the cryptocurrency market has affected smaller altcoins like Shiba Inu in a positive way, with the majority of tokens recovering up to 50% of their value. But unfortunately for investors, the recovery of the market was as rapid as its growth.
The net flow increase
According to data from WhaleStats tracking service, Shiba Inu’s net flow has increased by more than 850% in the last 24 hours, indicating a positive flow of funds into the market. The increase could be tied to numerous factors, including the recovery from the weekend’s trading session and the slight recovery of the market.
Though the market was moving upwards at the beginning of the day, according to CoinMarketCap, the majority of assets in the top 10 assets sorted by market capitalization are currently losing their value.
The same applies to Shiba Inu, which currently consolidates despite the increase in funds inflows. But despite the impressive increase, the net flow on Shiba Inu is still $7 million negative, which indicates that in the last 24 hours, more Shiba Inu have been sold than bought on the market by whale-tier addresses.
How net flow affects price
The net flow of assets usually directly affects the price of an asset, as tokens and coins tend to move in the direction of funds. Whenever whales leave the market and drop their holdings, retail traders follow, which causes the negative performance of an asset on the market.
The major part of SHIB’s positive market performance is the constant burning events that decrease the number of tokens in circulation on the market. According to TradingView, Shiba Inu’s prices have increased by almost 50% in the last 10 days.
Original Source :u.today
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