While the Shiba Inu price action has suddenly turned bullish amid the broad crypto market resurgence over the last day, its on-chain activity seems to be showing no positive outlook for SHIB.
Sparking concerns among market participants, data from on-chain analytics platform CryptoQuant shows that SHIB's exchange netflow is currently sitting at around 146 billion tokens, showing a 2.2% increase over the last day.
This highlights a notable increase in the flow of tokens between wallets and exchanges, marking a bearish outlook for the asset.
Billions of SHIB return to exchanges
Following the surge in the asset’s net flow, which suggests heightening sell pressure for SHIB, the data also reveals the asset’s net outflow across all exchanges has surged to about 435 billion.
While the asset’s price action shows a bullish trajectory, these figures technically show that tokens are increasingly returned to exchanges, which contradicts its bullish price move.
It is important to note that the flow of SHIB coins has continued to decline, which is a sign of heightened selling pressure and a potential market drawdown.
Furthermore, declines in exchange flow like this have historically been associated with potential market corrections, as it suggests that investors are selling off in preparation of further price dips.
However, the declining on-chain activity coinciding with a notable resurgence in the price of the asset suggests that whales might be taking quick profits following the price rebound after they have suffered several losses.
Over the last day, data from CoinMarketCap shows that SHIB has surged massively by 8.71%, trading at $0.00001009 as of press time.
While Shiba Inu has recorded an intraday low of $0.000009066, the sharp price surge saw it return to zero in a matter of hours. Hence, traders appear to have seized the opportunity to scoop off profits amassed during the rally as the sustainability of the price surge remains uncertain.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team