In Brief: Shiba Inu’s recovery weakened as more than 241 billion SHIB entered exchanges, increasing supply available for potential selling. Positive exchange netflow signaled seller dominance
Shiba Inu’s recovery faces pressure as traders moved more than 241 billion SHIB onto exchanges within 24 hours. According to CryptoQuant data, the token recorded a positive netflow of 241,877,000,000 SHIB during the period.
That reading means deposits exceeded withdrawals, placing more tokens on trading platforms where holders can sell them quickly. SHIB initially gained about 4%, allowing traders to secure profits during its latest recovery.
However, mounting deposits weakened that advance as available exchange supply increased alongside renewed selling activity. The token subsequently erased its gains and recorded a modest decline of approximately 0.45% during the same trading session.
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Positive exchange netflow generally carries bearish implications because investors commonly transfer assets to platforms before selling or trading them. Conversely, negative netflow can support accumulation narratives because withdrawals reduce the supply available across centralized exchanges.
The latest imbalance therefore suggests that sellers controlled market activity despite SHIB’s encouraging performance earlier in the session. Moreover, buyers must absorb the additional 241 billion tokens before the cryptocurrency can establish stronger upward momentum.
Failure to match that supply with sufficient demand could limit further gains and expose SHIB to deeper short-term losses. Nevertheless, one daily reading cannot confirm an extended downturn because exchange flows can reverse as market conditions change.
Market participants will likely monitor whether deposits remain elevated or withdrawals begin reducing the tradable supply of SHIB. A sustained decline in exchange inflows could ease selling pressure and provide buyers with better conditions for another recovery.
Meanwhile, persistent positive netflows may indicate that more holders intend to realize profits rather than maintain their positions. Broader cryptocurrency sentiment and trading volume will also influence whether SHIB can overcome the increased exchange supply.
Significantly, stronger demand could absorb incoming tokens, although the current reversal shows that sellers still hold considerable influence. Shiba Inu must regain its earlier momentum while preventing additional deposits from overwhelming buyers across supported trading platforms. For now, the 241 billion SHIB netflow remains a key obstacle to recovery, keeping the token vulnerable to further pressure.
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The post 241 Billion SHIB Exchange Netflow Threatens Shiba Inu Price Recovery appeared first on 36Crypto.
