Shiba Inu has entered a correction phase after experiencing significant gains in the previous trading session. The meme coin has spent the entire day trading in negative territory. At the time of writing, SHIB trades at around $0.00000838, indicating a 4.09% decline in the token's value over the past 24 hours. SHIB’s price action over the past 24 hours (Source: CoinCodex) The downward movement appears linked to waning demand from investors. Trading activity has slowed considerably compared to the bullish momentum witnessed just one day earlier. Market participants are now closely monitoring on-chain metrics for signals of where the price might head next. Exchange netflow data reveals a concerning trend for SHIB holders. The metric has increased by 1.54% during the last 24-hour period. This uptick indicates that more tokens are flowing onto exchanges than leaving them. Such movements typically precede selling activity. Rising Exchange Deposits Point to Bearish Sentiment Cryptoquant data shows that exchange netflow currently sits at over 52 billion SHIB tokens. This figure represents the gap between deposits and withdrawals across all trading platforms. The positive netflow means sellers have moved significantly more tokens to exchanges than buyers have removed. The increase spans major cryptocurrency platforms including Binance and Coinbase. These venues handle the majority of Shiba Inu trading volume globally. When tokens accumulate on exchanges, supply available for sale expands. This dynamic creates downward pressure on prices. The previous day's rally provided an opportunity for early investors to lock in gains. Whale wallets appear to be among those reducing positions based on transaction patterns. The timing of these deposits suggests strategic selling. Traders likely waited for the price spike to maximize returns before moving tokens to exchanges. This pattern is common during volatile market conditions when assets experience rapid price swings. Investor Confidence Remains Despite Short-Term Weakness Not all market participants view the current situation negatively. Some investors maintain optimistic outlooks for Shiba Inu's medium-term prospects. They argue that selling pressure will eventually exhaust itself as supply diminishes. The theory rests on the assumption that current holders are simply rotating profits. Once these sellers exit their positions, fresh demand could emerge at lower price levels. This cyclical pattern has played out multiple times in SHIB's trading history.
