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A recent Shiba Inu market update deduced from CoinGlass data indicates a 129% move toward net outflows.
According to spot flow data provided by CoinGlass, in the last 24 hours, Shiba Inu outflows came in at $6.24 million, more than inflows at $6.14 million. The difference ($101,700) yields a negative netflow change of 129%, indicating net outflows.
While this might seem concerning, the reverse is the case, as negative netflow might suggest buying pressure or accumulation.
This follows as Shiba Inu's price reverses a three-day drop. Shiba Inu fell for three days at a stretch from Feb. 17 to 19, where it found support at $0.00000612 and began to rise.
The recovery is extending into its second day from Friday, with SHIB reaching intraday high of $0.00000662 on Saturday.
At the time of writing, SHIB was up 4.80% in the last 24 hours to $0.000006493. Shiba Inu had also reversed weekly losses, up 0.41% in the last seven days, according to CoinMarketCap data.
Shiba Inu open interest rises 8%
The spot flow tool is used to confirm or contradict what is happening in the futures market. For example, if prices are increasing and futures open interest is also rising, these might indicate leveraged buying. In this regard, Shiba Inu open interest has risen nearly 8% in the last 24 hours to $78.79 million.
If price is increasing while spot flow stays negative, this might suggest an increase driven by derivatives or leverage, which might reverse quickly.
What's next for SHIB price?
Shiba Inu has been trading sideways between $0.00000508 and $0.00000724 since the beginning of February. The daily RSI, which is now slightly below 50, suggests that this sideways trading might continue a little while longer before a breakout or breakdown.
An immediate barrier for SHIB's price is expected at the $0.00000724 high before the daily MA 50 and 200 currently at $0.00000743 and $0.00000943. Support is expected at three points between $0.000005 and $0.000006: these are $0.0000061, $0.00000575 and $0.00000508.
Vladislav Sopov
Dan Burgin