Shiba Inu has jumped more than 5% in a day, but a rise in exchange netflow instead of the usual drop suggests the rally may lack real buying demand behind it.
Shiba Inu is up more than 5% over the past 24 hours, reclaiming its recent high and trading back above $0.0000055 as the broader crypto market rebounds. Yet the rally has not come with the usual drop in exchange netflow seen during price rises, and the positive momentum may not be backed by rising demand.
144 billion SHIB in one day
Rather than the decrease in netflow that often accompanies a rally, Shiba Inu's exchange netflow has instead risen. Onchain data from CryptoQuant shows SHIB's netflow sitting at around 144,869,700,000 tokens as of September 19.
Unlike a typical bullish signal, the positive balance means sellers currently dominate the Shiba Inu market. The number of tokens sent to exchanges for a potential sell-off is substantially higher than outflows aimed at buying, by over 144 billion SHIB.
SHIB eyes breakout past $0.000006
Shiba Inu has traded near $0.000005 for months amid broader market volatility, and traders have grown highly optimistic that the token could break through resistance toward $0.000006, especially after the more than 5% single-day gain.
Analysts, however, caution the rally may be short-lived, pointing to the divergence between rising prices and rising sell-side netflow as a sign that demand may not be keeping pace.
Source: U.Today
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