The Shiba Inu exchange flow has gone extremely positive over the last day, as more tokens have been added to exchanges, a bearish signal for the SHIB price.
While the metric is moving in a contrasting direction from SHIB’s current price movement, which has surged by over 4% during the same period, it appears that SHIB holders might be quietly taking profits.
SHIB netflow threatens rally
Shiba Inu has recently suspended its prolonged price dip and has resumed a rally amid the broad crypto market resurgence. While the rally has persisted up to this moment, its exchange flow suggests the rally may be short-lived.
According to data provided by crypto analytics platform Cryptoquant, the Shiba Inu exchange netflow has surged modestly by around 1% over the last 24 hours.
Even with this modest surge, the metric is showing an addition of 106.71 SHIB over the period. While the metric appears positive on the surface, it is an extremely bearish indicator.
It shows that the amount of SHIB returned to exchanges for selling purposes during the period is massively larger than the amount of tokens scooped out of the exchanges for purchase by over 106 billion tokens.
It is important to note that the +106 billion SHIB netflow strongly signals heightening selling pressure as it measures the difference between tokens sold and purchased from all supported exchanges at given periods of time.
It is unlikely that the SHIB netflow would become positive when there is an ongoing price rally. Hence, it is safe to say that the metric could have been fueled by traders taking profits amid the sudden price rally.
SHIB futures traders follow bullish trend
Unlike the SHIB exchange flow, the asset has extended its bullish move to the derivatives market as data from CoinGlass shows that SHIB futures traders have staked more tokens in the last day.
The data shows that SHIB’s overall open interest has surged by 4.81%, while Coinbase showed a very impressive increase of nearly 9% as American traders show more optimism for the asset’s future price movements.
