Shiba Inu, the popular meme coin, has recently hit a snag in its market performance, retracting significantly after experiencing a notable price surge. This downturn signals a potential shift in market dynamics, as key indicators suggest increased selling pressure is currently outweighing demand.
Shiba Inu's Recent Pullback
Following an impressive rally, Shiba Inu's momentum has stalled, with the cryptocurrency trading in the red and witnessing a 5.43% decline in its trading price over the last 24 hours. This retreat indicates a slowdown in demand, prompting traders to offload their holdings, thereby expanding the supply of SHIB available on various crypto exchanges.
Understanding the Exchange Netflow Signal
A significant factor contributing to this bearish outlook is the substantial surge in Shiba Inu's exchange netflow. Data reveals that traders have deposited over 52 billion SHIB tokens more than they have withdrawn in the past day, an increase of about 1.54%. This metric, which represents the difference between tokens flowing into and out of exchanges, clearly signals that a greater volume of SHIB is being moved to exchanges for sale, creating an environment ripe for further price adjustments.
Profit-Taking and Future Outlook
This increase in selling activity, spanning major exchanges like Binance and Coinbase, suggests that holders, potentially including large "whales," are taking profits following the asset's previous rally. While current sentiment points towards selling over retention, many investors remain confident that this is not the end for Shiba Inu. They anticipate a potential shift in market sentiments, expecting the current wave of sellers to eventually exhaust their holdings, which could pave the way for a recovery.
