The broad crypto market is regaining momentum and Shiba Inu is also having its own share of the rally as sentiments appear to be flipping bullish once again.
Amid the broader market resurgence, data from crypto analytics platform CryptoQuant shows that demand is returning to the Shiba Inu ecosystem.
Shiba Inu regains demand
Notably, the data shows Shiba Inu bull traders are taking over its exchange activity as its netflow shows a substantial decline of over 5%, now sitting at -78,761,600,000 SHIB as of October 16.
This decline in the exchange netflow signals growing demand as it shows that the total number of SHIB withdrawn from exchanges for holding purposes is substantially higher than the amount of SHIB sold over the last 24 hours.
Although a netflow of -78 billion SHIB may seem modest, its timing makes it significant as it shows that investors' confidence is gradually growing, driving a rally in the price of SHIB.
After weeks of extreme volatility, the negative SHIB exchange netflow shows the intense sell pressure facing the Shiba Inu ecosystem is finally cooling.
SHIB price spikes 4%
While the recent market volatility had previously caused Shiba Inu to lose support around the $0.000005 level, the asset is back in green territory.
With Shiba Inu bulls now taking over the market, the bullish exchange activity has triggered a modest rally for the asset and it is now trading above $0.0000051.
While it remains uncertain if Shiba Inu is back on track for a major price recovery, market analysts believe the asset may eventually break the negative Uptober curse if the bullish momentum persists.