Shiba Inu Adds 60% in Weekly Spot Flows: Explaining What It Means for Price Health

Weekly spot flows for Shiba Inu have increased by about 60%, suggesting that direct market activity surrounding $SHIB has improved despite the price's ongoing decline. The rise is significant because spot flows, as opposed to leveraged derivatives positions, typically represent real token purchases and transfers.

Inflows finally flip back

Positive net spot inflows over a number of shorter time periods are shown in recent flow data. Over the course of one hour, $SHIB recorded a positive net inflow of about $43,400, over four hours, about $77,100, and over twelve hours, almost $77,900. These numbers indicate that while the token is trading close to $0.00000417, buyers are consuming a portion of the available supply.

Stronger spot flows have not yet resulted in a strong price reversal, though. $SHIB is still below the daily chart's major exponential moving averages. The 50-day EMA is located around $0.00000464, and the 20-day EMA is close to $0.00000440. The 200-day EMA at $0.00000623 and the 100-day EMA at $0.00000518 show more significant resistance. Because of this structure, the overall trend remains negative.

$SHIB returned to the lower end of its current trading range after failing to maintain its June rebound. $SHIB is in the vicinity of oversold territory with the Relative Strength Index close to 35, but a reversal has not been confirmed. This implies that selling pressure may be waning, but it also leaves room for another drop. Data on on-chain exchanges is still inconsistent. While overall exchange netflow decreased by 0.18%, exchange reserves only increased by 0.03%.

Risks tied to inflows

Concurrently, the average seven-day exchange inflow increased by 8.25%. When tokens move onto exchanges, higher inflows may indicate greater selling risk, which would partially offset the positive spot-flow increase.

Buyers must push the token above $0.00000440 and then recover $0.00000464 in order for $SHIB's price health to significantly improve. Stronger spot flows suggest accumulation interest but not a proven recovery until that point. $SHIB would be vulnerable to another move toward the $0.00000400 area if it lost the most recent floor near $0.00000410.