Shiba Inu has begun to show signs of a potential recovery after multiple days of severe price correction as the broader crypto market continues to face increasing sell pressure.
While momentum appears to be shifting, the latest on-chain data from the crypto analytics platform CryptoQuant shows that buyers are beginning to dominate the Shiba Inu market once again.
Over 114 billion SHIB in demand
Although Shiba Inu is still struggling amid the prolonged market volatility as its price continues to trade in the red territory, its exchange activity is providing a different signal.
According to the data, the Shiba Inu exchange network has declined modestly by around 1.37% over the last day, sitting at -114,647,400,000 SHIB as of the time of writing.
The negative netflow balance indicates an increase in the demand for the leading meme token among investors as it means that the number of SHIB tokens that have been moved out of exchanges for buy purposes over the last 24 hours has substantially outweighed the number of SHIB tokens that flowed into exchanges in attempts to sell.
Apparently, this means that traders have bought more tokens than they have sold over the last day, positioning Shiba Inu for a bullish price reversal after the sharp price declines seen in the past days.
Does Shiba Inu still risk adding zero?
Although Shiba Inu is still showing mixed price action as it is yet to respond to the bullish exchange activity seen over the last day, market participants are regaining confidence in its potential price move.
While its price movement still remains slow, its hourly price chart shows that momentum is gradually changing as it has turned green, suggesting that Shiba Inu might be on the verge of recovery.
