The cryptocurrency market is showing renewed momentum, and Shiba Inu is benefiting from this resurgence. Recent trading activity has pointed toward a shift in sentiment, with bullish investors appearing to regain control after a period of volatility.
Netflow data signals renewed interest
CryptoQuant, an analytics platform specializing in on-chain data, has reported a significant decrease in Shiba Inu’s exchange netflow. As of October 16, the netflow had fallen by more than 5%, reaching -78,761,600,000 SHIB.
A negative netflow indicates that more SHIB tokens are leaving exchanges than entering. This suggests a higher number of tokens are being withdrawn, likely for long-term holding, which is generally interpreted as a sign of growing investor confidence and demand in the asset.
Shiba Inu’s netflow falling by 78 billion SHIB reflects increasing investor willingness to hold, signaling that selling pressure has finally eased after weeks of turbulence.
The timing of this shift is notable. After extended volatility and heavy selling, the negative netflow points to a cooling of sell pressure within the Shiba Inu ecosystem.
CryptoQuant’s data underscores that the withdrawal of SHIB from exchanges marks a turning point, as persistent outflows often precede upward price movements when confidence returns to the market.
Price rebounds after losing support
Earlier market turbulence had caused Shiba Inu to lose its support near the $0.000005 mark. With the market environment improving and buying activity increasing, the token has recovered and now trades above $0.0000051.
| Indicator | Previous | Current |
|---|---|---|
| Support level | $0.000005 | $0.0000051 |
| Exchange netflow (SHIB) | Not reported | -78,761,600,000 SHIB |
Market analysts suggest that if this bullish momentum continues, Shiba Inu may be in a position to overcome what has been described as the “negative Uptober curse,” a phrase referring to previous tendencies for the token to underperform during October.
Despite the recent uptick, uncertainty remains regarding Shiba Inu’s longer-term trajectory. Analysts are watching closely to see whether the asset can sustain the current rally or face renewed volatility.
Shiba Inu, launched in 2020 as a decentralized meme token, has built a significant following and is widely traded among retail investors. Its price remains highly sensitive to market sentiment and token flows on exchanges.
The recent developments highlight how on-chain metrics like exchange netflows can provide early signals about broader market shifts, especially for high-profile tokens such as SHIB.
