Shiba Inu has slowed significantly from its recent price rally, flipping back into the red zone after the broad crypto market began to witness rising sell pressure.
While momentum remains substantially negative, the latest onchain data from crypto analytics platform CryptoQuant shows that Shiba Inu's exchange activity is beginning to paint a different picture.
Over 74 billion SHIB moved off supply
Amid the ongoing market downturn, the data shows that Shiba Inu's exchange netflow is reflecting a negative balance, which is usually unexpected at a time like this.
With the exchange netflow now sitting at -74,374,900,000 SHIB after a modest decline of around 3%, the Shiba Inu exchange activity is flashing a signal that contrasts its price movement.
While exchange netflows have often been closely watched to determine the trading performance of a specific crypto asset across exchanges, they have been a major indicator of whether the asset is in demand or not.
Nonetheless, the balance currently projected shows that the amount of SHIB tokens moved off exchanges for buying purposes is substantially higher than the amount of assets that have been sold back to exchanges over the last 24 hours, by over 74 billion SHIB.
This typically implies that more traders are buying, which is currently not reflected in its price movements, as the asset is currently trading in deep red territory.
SHIB price reversal soon?
While the Shiba Inu exchange activity has yet to reflect on its price movement, it appears that bull traders are gradually taking over the market, positioning the asset for a potential price reversal.
As such, the bullish exchange activity has stirred optimism that the asset might be preparing to resume its rally, positioning it for a new price target of around $0.000008.
Dan Burgin
U.Today Editorial Team
