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Shiba Inu has crossed the bullish threshold: the 85 trillion level is gone, and the available supply on exchanges has now reached 86 trillion, which puts even more pressure on an already oversold and exhausted asset that has been struggling to find a base for recovery.
Mean exchange inflow data shows a 606% increase on the 7-day moving average. All exchange-inflow related metrics are in green, which suggests a substantial injection of funds on the investors' side. Shiba Inu has been struggling on the market since the beginning of October and increased pressure isn't something we'd want to see.
Overall netflow stays positive, at 42 billion SHIB tokens in 24 hours. The dynamic is clearly bearish and reflects a consistent, gradual selling that is unlikely to make things better for the asset in the near term.
For those unfamiliar with on-chain dynamics in general: positive netflows suggest the presence of liquidity flowing into exchanges, creating a constant, strong source of pressure on the price. Even if not sold immediately, supply sitting on exchanges is usually destined to be sold at some point in time.
Historically, Shiba Inu has had a large share of its supply sitting on centralized exchanges, and almost every market rally it had since 2023 was followed by a surge of both inflows and sell-side volumes.
Shiba Inu's price performance
Shiba Inu's technical performance on the market isn't better than its on-chain counterpart. The asset has been struggling since the beginning of October, as mentioned above. The price lost more than 28% of its value and is set for a further loss potentially.
With rising inflows on top of it, we get a recipe for disaster: negative sentiment, a constant source of selling pressure, a worrying general market picture, and a series of hacks, exploits and other illicit activities surrounding the industry in general.
Momentum indicators are also 'in red': RSI is moving sideways around the reading of 30, hinting at the current trend continuation.
The trading volume is somewhat flat, suggesting constant pressure, and the liquidity clusters sit at levels the price has not reached yet.