Shiba Inu is displaying early signals of a possible price turnaround despite ongoing market turbulence. Exchange flow data reveals growing demand for the popular meme cryptocurrency.
The digital asset's exchange flow metric shifted into negative territory over the past 24 hours. This change indicates more tokens are leaving exchanges than entering them. Investors appear to be accumulating rather than selling.
Data from CryptoQuant shows Shiba Inu's netflow across supported exchanges reached -31,737,600,000 tokens on January 25. The negative reading suggests substantial buying activity. More than 31 billion tokens moved from exchanges to private wallets during this period.
Demand Rises Amid Market Downturn
The positive exchange dynamics emerge as cryptocurrency markets face continued pressure. Most digital assets have experienced significant declines in recent sessions. Shiba Inu fell 4.38% in the last 24 hours, to trade at around $0.00000747 at the time of writing.
However, the exchange outflow pattern tells a different story beneath the surface. The metric points to strengthening demand even as prices decline. This divergence often precedes trend reversals in cryptocurrency markets.
Exchange netflow measures the difference between deposits and withdrawals at trading platforms. When outflows exceed inflows, it typically means investors are moving tokens to cold storage. This behavior indicates conviction and reduced selling pressure.
The current data shows buying activity outpacing selling by a considerable margin. Large-scale withdrawals suggest both retail and institutional participants are accumulating positions. These holders demonstrate little interest in liquidating their assets at current price levels.
Shift in Investor Behavior
The exchange flow pattern represents a notable change in market sentiment. In previous weeks, selling persisted as investors reacted to broader market weakness. That trend is reversing.
Token holders are increasingly moving their Shiba Inu holdings into self-custody wallets. This transfer activity indicates a shift from short-term trading to longer-term holding strategies. Investors who move tokens off exchanges typically plan to retain them for extended periods.
