Shiba Inu has begun to show signs of a potential recovery after multiple days of severe price correction, as the broader crypto market continues to face increasing sell pressure. While momentum appears to be shifting, the latest on-chain data from CryptoQuant shows that buyers are beginning to dominate the Shiba Inu market once again.
Over 114 billion SHIB in demand
Although Shiba Inu is still struggling amid prolonged market volatility and its price continues to trade in the red, its exchange activity is providing a different signal. According to the data, the Shiba Inu exchange netflow has declined modestly by around 1.37% over the last day, sitting at -114,647,400,000 SHIB as of the time of writing.
The negative netflow balance indicates an increase in demand for the leading meme token among investors. It means that the number of SHIB tokens moved out of exchanges for buy purposes over the last 24 hours has substantially outweighed the number of SHIB tokens that flowed into exchanges in attempts to sell. This suggests that traders have bought more tokens than they have sold over the last day, positioning Shiba Inu for a bullish price reversal after the sharp price declines seen in the past days.
Does Shiba Inu still risk adding zero?
Although Shiba Inu is still showing mixed price action and is yet to respond to the bullish exchange activity seen over the last day, market participants are regaining confidence in its potential price move. While its price movement remains slow, its hourly price chart shows that momentum is gradually changing as it has turned green, suggesting that Shiba Inu might be on the verge of recovery.
