Shiba Inu is still trading in the red territory, but its exchange activity has suddenly taken a different turn as bull traders appear to be awakening.
Per the latest data from the crypto analytics platform CryptoQuant, Shiba Inu has seen a sudden reversal in its exchange activity as exchange outflows appear to have outpaced inflows.
Shiba Inu sees bullish divergence
Despite the ongoing market downturn facing the broad crypto ecosystem, the data shows that Shiba Inu's exchange netflow is reflecting a negative balance.
While negative balances are often a strong indication that demand is outweighing selling pressure, which provides a bullish outlook for SHIB, it is usually unexpected at a time like this.
Nonetheless, the data shows that the Shiba Inu exchange netflow as of October 24 is sitting at -95,682,500,000 SHIB after a modest decline of about 3% over the last 24 hours.
While this signals increasing demand for the leading meme token, Shiba Inu has slumped by over 5% over the same period.
Will Shiba Inu price reverse?
Following the market volatility, Shiba Inu has lost support around $0.000005 and is hovering around $0.000004815 as of October 24.
Apparently, this shows that Shiba Inu's exchange activity is flashing a signal that contrasts its price movement, drawing attention from market analysts.
Although Shiba Inu's current price activity is extremely weak, the growing activity across its exchanges suggests that traders might be accumulating the dip.
Hence, the increased buying activity seen on exchanges is expected to drive a U-turn in its price movement, positioning the asset for a potential price recovery.
Arman Shirinyan
Dan Burgin
