Shiba Inu, after briefly rekindling investor optimism with a price resurgence, has once again retreated into the red zone. Recent on-chain analytics paint a concerning picture, revealing a significant increase in selling pressure and waning demand that threatens to undermine any immediate recovery for the popular meme asset.
Alarming Surge in Exchange Netflow
A key indicator of this bearish shift is the dramatic rise in Shiba Inu's exchange netflow. Over the past 24 hours, the netflow of SHIB tokens into exchanges soared by over 8%, amounting to a staggering 760 billion tokens. This massive movement of supply onto trading platforms is a strong signal of increasing selling intent or preparation for heightened volatility, suggesting that fear and doubt are growing among traders, potentially leading to panic selling.
Growing Exchange Reserves Signal Fading Demand
Reinforcing the negative outlook, Shiba Inu's exchange reserve metric also shows a substantial increase of over 1%, pushing the total SHIB held on exchanges to more than 82.32 trillion tokens. This expanding pool of available SHIB on exchanges signifies a clear reduction in market momentum and demand from both retail and institutional investors. Consequently, SHIB's price has already seen a decline of 2.9%, indicating that the asset is struggling to maintain its ground and may find it challenging to recover lost value in the near term.
