As Shiba Inu’s price continues to weaken, exchange data reveals a contrasting narrative. According to figures from CryptoQuant, the token‘s net flow on exchanges has turned negative again. This shift suggests a potential uptick in demand for SHIB, which has recently faced significant selling pressure.
Market Dynamics Signal Change
CryptoQuant’s recent data highlights that Shiba Inu outflows have surpassed inflows on exchanges. Known as a meme token on the Ethereum network, Shiba Inu relies heavily on community sentiment. As of October 24, the net flow on exchanges was recorded at a negative 95.682 billion SHIB.
A negative net flow indicates assets are being withdrawn from exchanges, potentially signaling a waning desire to sell. This development becomes particularly intriguing as the broader crypto market experiences a downturn, drawing attention to trading behavior around SHIB.
CryptoQuant data shows Shiba Inu outflows exceeding inflows, keeping net flow negative.
Demand Rises Amid Price Weakness
Despite a near 3% decline over the last 24 hours, the sustained negative net flow hints at a strengthening buying interest that could counteract selling pressure. However, during the same period, the price of SHIB dropped more than 5%. This divergence highlights the short-term disparity between on-chain data and market pricing.
On October 24, Shiba Inu dipped below the $0.000005 level, trading at approximately $0.000004815. Despite the price weakness, the increasing outflows suggest that some investors might perceive the pullback as a buying opportunity.
Analysts Monitor Market Anomalies
Market analysts are closely watching the contrasting direction between price movements and exchange flows. Ordinarily, a negative net flow would imply that supply is moving away from exchanges, potentially providing price support. However, current market volatility may prevent this signal from immediately influencing prices.
Although the price outlook remains weak, increased exchange activity hints at accumulation by some investors amid the downturn.
While the shift in data maintains the prospect of a recovery for SHIB, a clear price reversal has yet to materialize. The market focus remains on whether exchange outflows will persist and if buying interest will sustain in the longer term.
