Although exchanges still hold a massive supply of Shiba Inu (SHIB) following the intense sell pressure the market faced recently, the latest exchange activity shows that this supply has begun to shrink.
While recent market data shows that investors are increasingly moving tokens in and out of exchanges, the latest exchange activity shows that selling pressure is fading.
Shiba Inu to recover soon?
Latest onchain data from a crypto analytics platform shows that the Shiba Inu exchange reserves are sitting at about 87.06 trillion SHIB, following a decline of 0.1% over the past 24 hours.
While this shows that there are still substantial amounts of SHIB available for sale on exchanges, the decline shows that traders are buying amid renewed interest in the leading meme token.
While the data further projected a negative exchange netflow of 33.94 billion SHIB, following a decline of 1.25% over the last day, market analysts have predicted that the overall reserve could fall to 86 trillion SHIB in the near future.
It is important to note that negative netflow means that more tokens left exchanges than entered them during the specified period, providing a bullish outlook for SHIB despite the slow price movement.
SHIB price outlook
While the Shiba Inu exchange activity is beginning to appear promising after several weeks of extreme volatility and intense selling pressure, traders should note that declining exchange inflows and negative netflows do not automatically signal an imminent price increase.
However, they provide insights into the market behavior of SHIB traders, signalling increasing demand which could eventually garner bullish momentum for the asset.
Arman Shirinyan
Dan Burgin
