In the last 24 hours, more than 184 billion Shiba Inu (SHIB) tokens have moved onto trading platforms, marking a significant increase in exchange net inflows. SHIB's exchange netflow increased by substantial 259%, according to on-chain data.
Market dynamic
Inflows and outflows are differentiated by exchange netflow. Given that more coins are being deposited on exchanges, a strong positive reading like the one we are seeing right now typically indicates increased selling pressure. The market may be anticipating increased volatility given SHIB's 182.6 billion net inflows.
SHIB is consolidating within a contracting triangle formation when viewed from a price standpoint. The token is currently trading sideways at $0.0000123, battling resistance near the 100 EMA and the formation's upper boundary. SHIB has failed to produce significant momentum despite multiple attempts to break higher, and volumes are still dropping, indicating traders' indecision. The timing of this spike in inflows may be crucial.
Decline potential
SHIB faces the possibility of another decline toward the $0.0000115 region or possibly back to the $0.0000100 psychological support if these tokens are in fact getting ready to be sold. Alternatively, if these inflows are the result of market makers or large holders repositioning, it may pave the way for better liquidity and a possible breakout attempt in the coming weeks. Since it is neither oversold nor overbought, the RSI stays neutral at 45, allowing for both upward and downward movements.
The short-term outlook is nevertheless made more uncertain by high exchange activity. Finally, even though Shiba Inu has demonstrated stability at its current level, the 259% net inflow spike begs the question of whether the asset is preparing for its next significant move or is about to experience more intense selling pressure.
