This week, Shiba Inu (SHIB) experienced a remarkable 60% surge in spot inflows, marking a potential shift in its market dynamics. For instance, in just one hour, SHIB welcomed about $43,400 in new investments, indicating renewed interest from buyers despite the token trading around $0.00000417. Such figures suggest that while the price may still be on a decline, the activity around the token is gaining momentum.
Recent data shows that over the last four hours, spot inflows reached approximately $77,100, and over twelve hours, nearly $77,900 flowed into the market. This uptick is crucial, especially since spot inflows typically reflect actual purchases, as opposed to leveraged trading. The inflows indicate that buyers are absorbing some of the SHIB supply, which could support a healthier market environment.
However, despite these positive inflows, Shiba Inu has yet to stage a significant price recovery. Currently, it remains below key moving averages, with the 50-day exponential moving average hovering around $0.00000464 and the 20-day at approximately $0.00000440. The 200-day EMA sits at $0.00000623, creating formidable resistance that SHIB struggles to overcome.
Interestingly, while there’s a slight increase in buying activity, SHIB's Relative Strength Index (RSI) is near 35, indicating that the token is approaching oversold conditions. This suggests that selling pressure may be easing, yet it leaves room for more price drops if the momentum doesn’t shift.
Moreover, with a notable 8.25% rise in average seven-day exchange inflows, there's an underlying risk of increased selling pressure. When tokens are sent to exchanges, it often means traders are preparing to sell, which can counteract the benefits of the recent inflows. For instance, overall netflows across exchanges fell by 0.18%, while exchange reserves only increased marginally by 0.03%, hinting at mixed signals in the market.
This material is for informational purposes only and should not be considered financial advice.
