Shiba Inu has continued its downward trend as the broader crypto market volatility persists. However, its exchange activity is beginning to provide a bullish outlook.
As market sentiment is still barely positive, it appears that traders are beginning to show conviction in the leading meme token again and they have begun to buy more tokens over the last day.
Shiba Inu eyes recovery
Although Shiba Inu has yet to see a major recovery in its price, its exchange flow shows that demand is rising and selling pressure has begun to fade.
Data from crypto analytics platform CryptoQuant shows that the Shiba Inu exchange flow is currently sitting at -28,304,500,000 SHIB as of Saturday, June 20.
This shows that the amount of SHIB tokens moved out of exchanges in the last 24 hours for buying purposes is more than the amount of tokens returned to exchanges in attempts to sell by over 28 billion.
As such, the demand for the asset is rising, and it has begun to overwhelm the selling pressure seen in the previous days, which positions Shiba Inu for a potential price recovery.
Shiba Inu still in red
Nonetheless, it is important to note that the bullish Shiba Inu exchange netflow arrives at a time when the broader crypto market is showing signs of a potential recovery, as the prices of leading crypto assets like Bitcoin and XRP show modest gains.
However, this is yet to be the case for SHIB, as its price is still trading in the red, showing a decline of 1.28% over the last 24 hours and trading at $0.000004710 as of the time of writing.
Although the bullish exchange performance has yet to reflect in SHIB's current trading price, analysts are convinced that the asset will turn positive in the near future if demand persists.
U.Today Editorial Team
Dan Burgin
