The Shiba Inu token, known for its volatility, has recently displayed signs of easing market tension following a significant downturn in the cryptocurrency market. According to data from CryptoQuant, the net flow of SHIB tokens—which accounts for the difference between tokens entering and leaving exchanges—dropped to 65 billion tokens on October 10. This figure marks a notable decrease from the hundreds of billions seen in previous days and suggests that while seller dominance persists, it has significantly weakened compared to earlier periods.
Exchange Inflows Decline
The net flow metric provides a snapshot of the balance between tokens being moved to exchanges for sale and those being withdrawn from exchanges for purchase. In Shiba Inu’s case, a positive net flow indicates that more SHIB tokens are being deposited to exchanges, signifying selling activity, than those being withdrawn to wallets, which would signify buying activity.
Currently, the net flow stands at approximately 65 billion SHIB tokens. Although this suggests that bearish pressure has not completely dissipated, it does point to a more restrained environment compared to previous sharp selling phases. Amidst these conditions, as retail investors proceed cautiously due to market volatility, the slowdown in large-scale inflows reflects a slight mitigation in market anxiety.
CryptoQuant data indicates sustained seller dominance on the SHIB front, albeit significantly reduced compared to previous periods.
Signals of Price Recovery
Alongside the easing exchange data, SHIB prices have again moved into positive territory. This rebound suggests a potential shift in market sentiment, buoying expectations of a gradual return in demand as selling pressure wanes.
As a meme token built on the Ethereum network and supported by a robust user community, Shiba Inu is closely monitored for exchange inflows and outflows to gauge the behavior of short-term investors. Analysts suggest that if the current momentum holds, a stronger recovery for the meme token could be on the horizon, although the positive net flow indicates that risks of selling activity have not been entirely eliminated.
The drop to 65 billion SHIB in net flow reveals that while sellers are not fully retreating, their dominance has lessened compared to previous highs.
From a broader market perspective, Shiba Inu’s recent movements extend beyond mere price changes. The reduction in tokens being deposited to exchanges hints at a more balanced investor stance post significant market withdrawal. In the coming days, the trajectory of net flow data will be a critical indicator for Shiba Inu’s short-term trend.
