With over 700 billion tokens recorded in exchange-related flows over the last day, Shiba Inu has recently seen a significant increase in on-chain activity. Although price action is still erratic, following weeks of drops in the overall cryptocurrency market, underlying indicators point to the potential slowdown of the aggressive selling phase.
Shiba Inu exodus yet to come
Exchange outflows have significantly increased in comparison to inflows, according to recent data. To put it simply, there are more SHIB exiting exchanges than entering. Usually, this activity shows that investors are transferring tokens into personal wallets instead of getting them ready for sale. When market participants opt for accumulation or long-term holding rather than panic-selling, such movements frequently occur close to local bottoms.
SHIB/USDT Chart by TradingViewSHIB avoided some of the catastrophic breakdowns observed on larger assets during the recent downturn, but it did follow the overall market decline. While there were significant liquidation cascades for Bitcoin and Ethereum, SHIB’s decline was relatively contained despite being severe.
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Data on exchange flows now suggests that sellers are running out of energy. Large exchange outflows typically indicate that selling pressure has slowed. The immediate supply of tokens that can be dumped decreases as fewer tokens are left on trading platforms. If demand starts to rebound along with improved market sentiment, it becomes possible for prices to stabilize or even recover temporarily.
Rekindled interest from funds and bigger investors hoping to get in front of a possible market recovery is another element. After forced selling stops, cryptocurrency markets frequently pick up speed, and early capital often shifts to riskier assets like SHIB in pursuit of disproportionate returns.
Nonetheless, the combination of robust outflows, waning sell pressure and fresh accumulation signals raises the possibility that the current price zones will see a normalization of conditions.
Source: https://u.today/700000000-shiba-inu-recorded-inflows-in-24-hours-as-major-funds-turn-to-crypto-market-acceleration
