Although Shiba Inu is currently facing further volatility as its price suddenly returns to the red zone, showing a notable daily decline, its exchange activities suggest that the asset is still in demand.
Over the past day, Shiba Inu holders have acquired more tokens than they have sold as data from crypto analytics platform Cryptoquant shows that the Shiba Inu exchange netflow has flipped extremely negative over the last day, sitting at a massive -141,471,460,000 SHIB.
Shiba Inu demand grows
When the exchange netflow of an asset is negative, as seen in the case of SHIB today, it is a typical indicator of growing demand as it signals higher buying activities across all supported exchanges.
Usually, such a scenario is seen when the price of the asset is on the rise. However, this is not the case this time, as Shiba Inu is currently showing notable losses with a price decline of 5.07% over the last day.
As such, the surge in the demand for the asset is attributable to SHIB's recent regulatory clarity from the SEC, where the asset was officially declared a digital commodity rather than a security.
With the Shiba Inu exchange flow flashing bullish signals, it has stirred optimism that the ongoing price dip will be short-lived, and SHIB will resume its rally soon.
SHIB price flips negative
Despite the bullish Shiba Inu exchange metric, its price is currently trading negatively as the recent market resurgence cools.
While Shiba Inu is showing a decrease of 5.07% in its price over the last 24 hours, it appears traders are still willing to buy as bullish traders remain resilient.
Dan Burgin
Vladislav Sopov
