Shiba Inu (SHIB) recently climbed more than 5% in value, pushing its trading price above the $0.0000055 mark. However, data from CryptoQuant indicates that a massive amount of the token is moving onto exchanges, signaling potential selling pressure.
The 144.9 billion SHIB inflow on September 19
The recent movement of Shiba Inu (SHIB) has been marked by a significant influx of tokens into trading platforms. according to data from CryptoQuant, the meme coin recorded a positive netflow of approximately 144.9 billion SHIB on September 19. In the cryptocurrency market, a positive netflow is typically viewed as a bearish indicator because it signifies that more tokens are being moved onto exchanges to be sold rather than being moved into private wallets for long-term storage.
This massive volume of SHIB entering exchanges suggests that a large number of holders may be looking to capitalize on recent price movements.. While the token's price has seen a temporary lift, the sheer scale of this 144.9 billion SHIB inflow creates a heavy supply overhang that could stifle any further upward momentum in the immediate term.
Chasing the $0.000006 psychological resistance
Shiba Inu is currently facing a critical technical test as it attempts to break past the $0.000006 resistance level. the token has spent several weeks struggling to maintain stability around the $0.000005 mark, making this latest push toward $0.0000055 a vital moment for its short-term trend.
Breaking through the $0.000006 threshold would require a significant shift in market sentiment and a surge in genuine buying pressure. Without such a shift, the current price action may simply be a period of profit-taking within a broader, more volatile sideways trend.
A disconnect between SHIB price and CryptoQuant data
A notable divergence has emerged between the rising price of Shiba Inu and the underlying exchange activity reported by CryptoQuant. While the asset has jumped over 5% in the last 24 hours, the fact that exchange netflow is positive rather than negative suggests that the rally is not being driven by a massive accumulation of coins by long-term investors.
The report says that this dichotomy between price and flow is a primary reason for analyst caution.. When price increases occur alongside rising exchange inflows, it often indicates that the price is being driven by speculative volatility rather than a fundamental increase in the token's demand.
Whether buyers can absorb the 144.9 billion SHIB supply
Several critical questions remain regarding the sustainability of the current SHIB price action . It is currently unverified whether the recent 5% jump is a precursor to a larger breakout or merely a temporary spike before a retracement to previous lows. Additionally, market participants are waiting to see if the broader cryptocurrency market's resurgence will provide enough tailwinds to flip the SHIB netflow from positive to negative, which would be a much stronger signal of genuine demand.
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