Leading meme asset Shiba Inu appears to be attempting a price breakout amid the prolonged volatility as exchange flows begin to signal rising demand.
After multiple days of staying positive, the Shiba Inu exchange flow metric has turned red over the last day, showing a slight decline of about 1% over the last day.
With this decline in the metric, it appears that the amount of tokens sent to exchanges for selling purposes over the last day is lesser than the amounts of Shiba Inu tokens purchased from exchanges by a substantial amount.
According to data from crypto analytics platform CryptoQuant, Shiba Inu’s netflow across all supported cryptocurrency exchanges is sitting at -31,737,600,000 as of Jan. 25.
Shiba Inu headed for recovery?
The bullish exchange flow has come at a time when the market is seeing a persisting bloodbath, and crypto assets, including meme tokens like SHIB, have continued to plummet.
Although Shiba Inu is still trading in the deep red territory, plunging by 1.45% over the last day, the decline in the exchange net flow suggests a rise in demand, and the price correction might be nearing its end.
While the SHIB netflow represents the difference between the Shiba Inu exchange inflows and outflows, it means that the amount of SHIB tokens scooped out of exchanges in major buying activities is greater than tokens returned to the exchanges for selling purposes by over 30 billion tokens.
As such, it appears that momentum might be returning to the Shiba Inu ecosystem, and the Shiba Inu price may be headed for recovery in the near term.
With this metric, it appears that many small and large SHIB holders are beginning to show little to no interest in selling off their holdings amid growing demand in the asset.
Instead of the prolonged panic selling trend triggered by weakened investors sentiment, holders are now moving their tokens into self-custody wallets to hold for longer periods.
Notably, the metric has stirred hopes that the asset may be preparing for a bigger rally as selling pressure continues to subside amid growing appetite for the leading meme asset.
Caroline Amosun
Tomiwabold Olajide
Arman Shirinyan