Shiba Inu is back in the green territory, but its exchange activity suggests that bearish traders are taking over the market as demand has been overwhelmed by rapid sell pressure.
Although exchange activities do not entirely determine the price action of the market, they reflect the behavior of traders. Shiba Inu’s exchange activity over the last day has flashed a bearish signal.
226 Billion $SHIB back to exchanges
Latest data from crypto analytics platform CryptoQuant shows that the Shiba Inu exchange netflow has declined massively by over 97% over the last 24 hours.
Following the rapid decline in the metric, the Shiba Inu exchange netflow is currently sitting at over 226 billion $SHIB as of Saturday, August 1.
While such a substantial decline in the netflow was accompanied by a positive volume of hundreds of billions of $SHIB, it implies that traders have sent tokens back to exchanges more than they have withdrawn over the last day.
This has printed a bearish signal, as it suggests that the asset is experiencing another wave of sell-off pressure that has outpaced demand seen during previous trading sessions.
Shiba Inu rebounding again?
Shiba Inu presents an interesting case for analysts to watch, as the asset is showing a major divergence between its exchange activity and its current price action.
Despite the bearish trend in the Shiba Inu exchange activity, Shiba Inu has taken an unexpected turn with a notable price rally, a trend similar to last week’s momentum when $SHIB surged by over 30% in a day. The asset is currently showing a daily increase of over 7%.
While the ongoing trend mimics the trading pattern seen last week, Shiba Inu holders are becoming optimistic about another parabolic price move similar to what was seen earlier.