Shiba Inu has continued to trade on a downward trajectory amid prolonged broader market volatility. However, its exchange activity over the last 24 hours has provided a different signal.
With its price still struggling to reclaim its recent high around the $0.000005 mark, the latest data from crypto analytics platform CryptoQuant has provided investors with a glimpse of hope for a possible price recovery soon.
44 billion SHIB in demand
Per the data, the Shiba Inu exchange netflow has drawn attention amid the market downturn after projecting a negative balance of 44.1 billion SHIB as of Thursday, August 13.
While a netflow of 44 billion SHIB may seem modest, its timing makes it significant as it shows a major divergence between the SHIB trading price and its exchange activity.
Notably, the metric shows that the amount of SHIB tokens moved out of exchanges amid growing demand is significantly greater than the amount of SHIB returned to exchanges for sell-off purposes over the last day.
While the difference in both activities stands at -44 billion SHIB, it means that the amount of SHIB available for sale on exchanges has been reduced substantially, gradually cooling the intense sell pressure facing the Shiba Inu ecosystem.
Where's SHIB headed?
Although the Shiba Inu exchange flow provides a bullish outlook for SHIB, the asset is still struggling to recover near its recent high, consistently trading in the red zone.
However, analysts believe there is still a chance for a potential price reversal for SHIB if investors remain resilient and it is able to sustain demand even amid such weak market conditions.
U.Today Editorial Team
Dan Burgin
