SHIB Exchange Netflow Drops 97% as 226 Billion Tokens Return to Exchanges
Key Takeaways
- •SHIB's exchange netflow declined by more than 97% over the past 24 hours, standing at over 226 billion tokens as of August 1, according to CryptoQuant data.
- •A positive netflow indicates that more tokens were deposited to exchanges than withdrawn, which traders typically interpret as a precursor to selling activity.
- •Despite the bearish exchange flow signals, SHIB posted a daily price gain exceeding 7% at the time of reporting.
- •The previous week, SHIB surged by more than 30% in a single day, and current trading patterns are mirroring that earlier behavior.
- •Market watchers are closely monitoring whether the exchange inflows will result in profit-taking or be absorbed by ongoing spot demand.
SHIB Exchange Netflow Drops 97% as 226 Billion Tokens Return to Exchanges
Shiba Inu (SHIB) has returned to positive price territory, but the token's exchange activity points to growing bearish pressure as sell-side flows overwhelm buyer demand.
While exchange metrics do not solely dictate price action, they offer a meaningful window into trader behavior. Over the past 24 hours, SHIB's exchange activity has flashed a distinctly bearish signal.
226 Billion SHIB Sent Back to Exchanges
Data from crypto analytics platform CryptoQuant shows that the Shiba Inu exchange netflow has declined by more than 97% over the last 24 hours.
As of Saturday, August 1, the SHIB exchange netflow stood at over 226 billion tokens. Although this substantial netflow decline was accompanied by a positive volume amounting to hundreds of billions of SHIB, the implication is that traders deposited more tokens to exchanges than they withdrew during the period.
A positive netflow — meaning more tokens moving onto exchanges than off — is typically interpreted by traders as a precursor to selling, since assets held on exchange wallets are more readily available for liquidation. For meme coins like SHIB, which trade largely on retail sentiment and social momentum rather than fundamentals, large exchange inflows can amplify volatility if sellers act simultaneously.
This dynamic has produced a bearish signal, suggesting the asset is facing renewed sell-off pressure that has outpaced the demand observed in earlier trading sessions.
Price Diverges From Exchange Activity
Shiba Inu presents a compelling case for market observers, as a significant divergence has emerged between its exchange activity and its spot price performance.
Despite the bearish undercurrent in exchange flows, SHIB has staged an unexpected price rally — echoing the momentum seen the previous week, when the token surged by more than 30% in a single day. At the time of reporting, SHIB is posting a daily gain exceeding 7%.
Such divergences are not uncommon in the meme coin segment, where short-term price moves can be driven by community campaigns, listing announcements, or broader risk appetite in crypto markets rather than token-flow fundamentals. Whether the current inflows eventually translate into profit-taking — or whether spot demand absorbs the added supply — remains the key variable SHIB watchers are tracking.
With the current pattern mirroring last week's trading behavior, SHIB holders are increasingly optimistic about the possibility of another parabolic price move similar to those witnessed earlier.
Source: CryptoNews