Shiba Inu Futures Experience Major Outflow

A key indicator suggests Shiba Inu (SHIB) futures traders are reducing their positions. The futures flow metric, which tracks coin movement into and out of derivatives exchanges, has seen a substantial decrease, potentially signaling a shift in trader sentiment.

Netflow Plummets 694%

According to CoinGlass data, Shiba Inu’s future netflow dropped by a significant 694% over the past 12 hours. This indicates that the value of SHIB leaving futures exchange wallets exceeded the value entering them. Specifically, inflows totaled $3.98 million, while outflows reached $4.59 million.

Broader Market Sell-Off Contributes to Decline

This shift in SHIB futures coincides with a broader sell-off in the cryptocurrency market. Total liquidations across the market reached $386 million in the last 24 hours as investors pull back from risk assets. Stock and commodity markets are also experiencing volatility.

SHIB Price Performance

Shiba Inu’s price has reflected this bearish sentiment, falling 2.67% in the last 24 hours to $0.00000583. This decline reversed a three-day upward trend that briefly surpassed the daily MA 50 at $0.00000595, with the price dropping to a low of $0.00000578.

On-Chain Data Suggests Limited Conviction

Market data suggests that new demand for SHIB is being outweighed by existing holders reducing their exposure. This can potentially limit gains, even as interest in the cryptocurrency appears to be building. On-chain data also indicates a lack of strong conviction, with retail investors remaining hesitant to invest until a clear market direction emerges.

Potential Rebound and Key Levels

Despite the current downturn, a short-term price rebound is possible if macroeconomic conditions improve. In such a scenario, Shiba Inu could target increases to $0.00000625 and $0.000008. Support is currently anticipated around the $0.000005 level.

Upcoming Economic Data

Traders are closely watching for upcoming economic data releases. Initial jobless claims for the week ending March 28 will be released on Thursday morning, with the full March jobs report scheduled for release on Friday morning.