With Shiba Inu consistently trading in the deep reds, the leading meme asset is gradually seeing momentum fade amid the broad crypto market downturn.
However, the Shiba Inu on-chain activity appears to be showing a positive outlook for SHIB, as data provided by CryptoQuant shows a decent decline in the exchange netflow of the asset over the last 24 hours.
-101,387,800,000 SHIB signal growing demand
The data shows that Shiba Inu has recorded a massive -101.38 billion SHIB in netflows in the last 24 hours, showing a mild decline of nearly 2% during the period.
Notably, the figure highlighted typically represents the difference between the amount of SHIB tokens that have flown in and out of supported crypto exchanges over the last day.
While this metric shows a huge decline, it reveals that the amount of SHIB tokens scooped out of exchanges in an attempt to buy off the assets is significantly more than the amount of tokens returned to exchanges in attempted sales.
Thus, it is important to note that the metric actually supports a bullish reading as it signals heightening demand and reduced selling pressure despite the asset’s plummeting price action.
While the total number of SHIB tokens sitting in all exchanges has also declined to about 80.5 trillion since the last day, Shiba Inu is printing the possibility of returning the zero it added during the prolonged price decline.
What's next for SHIB?
While the asset’s price action currently shows a bearish trajectory, trading at $0.000007676 with a notable decline of 3.37% over the last day, its exchange movement technically shows that tokens are increasingly moved out of exchanges, fueling hopes of an imminent rebound.
While these figures appear bullish, SHIB's next price action is highly dependent on trader intent and general market sentiment, as the surge in demand may have been driven by short-term hype.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team