Shiba Inu recorded a notable price increase of more than 5% over the past 24 hours, tracking a broader recovery in the cryptocurrency market. The token reclaimed a level above $0.0000055, sparking renewed optimism among traders for a potential breakout toward the $0.000006 mark.
Increase in exchange netflow raises caution
Onchain data from CryptoQuant, a prominent blockchain analytics platform, shows a different picture behind the recent price movement. In the last 24 hours, Shiba Inu’s exchange netflow climbed to approximately 144,869,700,000 SHIB as of September 19.
Typically, a decrease in exchange netflow accompanies genuine bullish momentum in the crypto market, as fewer tokens sent to exchanges can indicate holders’ willingness to retain their assets. In Shiba Inu’s case, however, the exchange netflow turned positive, reflecting a scenario where more tokens are being sent to exchanges rather than withdrawn from them.
This pattern typically suggests that sellers are currently more active in the market. A positive netflow shows that the number of SHIB tokens deposited on exchanges for potential selling exceeds the amount withdrawn by a substantial margin—over 144 billion SHIB within the last day.
Mini dictionary: CryptoQuant, a leading cryptocurrency analytics platform that provides detailed on-chain and market data for various digital assets.
Market sentiment and resistance levels
Shiba Inu has been hovering around the $0.000005 range over recent months, a period marked by heightened volatility in the crypto sector. Despite this instability, market participants have grown increasingly optimistic about the token’s prospects for a breakout, especially after the recent surge above $0.0000055.
The latest price jump reenergized hopes that Shiba Inu could soon overcome resistance at $0.000006. Such sentiment has been fueled by the token’s abrupt rally, with some traders anticipating further gains if the broader market maintains its positive trend.
While Shiba Inu posted a sharp rally, the latest exchange netflow data signals that the move may be driven by short-term traders preparing to sell, rather than long-term accumulation backing the surge.
Analysts monitoring these trends suggest that the bullish momentum might be short-lived. They argue that the disconnect between rising prices and growing exchange netflow indicates insufficient underlying demand to sustain a significant breakout.
Sellers dominate current market activity
The substantial increase in SHIB tokens being transferred to exchanges reflects mounting pressure from sellers. When netflow data favors inflows over outflows by a pronounced margin, it generally points to a heightened risk of profit-taking or renewed market corrections.
As a result, market observers caution that unless demand picks up meaningfully and exchange outflows begin to surpass inflows, Shiba Inu could struggle to maintain its course towards new highs and may face renewed downward pressure in the near term.
