Shiba Inu has stayed in the bullish zone as market sentiment turns positive and traders show renewed conviction in the meme token. While the asset has not seen a major price recovery yet, its exchange flow data suggests demand is rising and selling pressure is easing.
Exchange netflow turns bullish
According to data from crypto analytics platform CryptoQuant, Shiba Inu’s exchange netflow has seen a modest surge over the last day as onchain activity picks up. In the past 24 hours, the amount of SHIB tokens removed from exchanges exceeded deposits by 266 billion SHIB. This means traders bought more tokens than they sold, indicating growing interest in the asset.
The bullish netflow comes as the broader crypto market shows signs of a potential recovery. Leading assets, including SHIB, are beginning to flip positive in price action, though gains remain modest so far.
Price dips despite demand rise
Despite the positive exchange flow signal, Shiba Inu has slipped back into negative territory after showing decent gains the previous day. At the time of writing, SHIB trades at $0.000004656, down 2.83% over the last 24 hours. This divergence suggests that downward pressure from recent volatility is still outweighing the rising demand.
The prolonged volatility from the previous week appears to be lingering. Investors might be cautious, since price recovery has been slow even as more tokens leave exchanges. The asset is struggling to maintain an uptrend over the longer term.
What this means for traders
For now, the netflow data is a bullish signal, but price action has not followed yet. This could mean the market is still digesting the shift, or that broader macro conditions are slowing down any potential breakout. Some traders might see this as a buying opportunity, but the risk remains high given the ongoing price weakness.
Shiba Inu’s future direction will likely depend on Bitcoin’s stability and overall market sentiment. If the broader recovery continues, SHIB could benefit from the increased exchange outflow. But if volatility returns, the token may struggle to hold its current support levels.
