Shiba Inu (SHIB) Exchange Outflow Hits 481 Million: Details

The exchange outflows of Shiba Inu nosedived yesterday, indicating that there may be a short-term change in investor activity. 

Based on the chart from CryptoQuant, the average exchange outflow on June 17 was 561 million SHIB. This value dropped to 481.1 million SHIB the day after.

]Reduced withdrawal of almost 80 million SHIB tokens from exchanges generally indicates low accumulation activity by investors. That may suggest less confidence in the token over the short term.

This decrease happened when the SHIB price fell slightly from around $0.0000118 to $0.0000115. Both metrics are clearly displayed on the chart, showing that as the price eased, so did the outflow. This pattern hints that traders may be waiting to see more clarity before making new moves.

For traders, this drop could suggest less immediate buying pressure, which might result in lower volatility in the short term. 

If fewer tokens are being moved off exchanges, it could mean investors are not preparing to hold or stake but instead keeping them ready for quick trading. That is often a signal of indecision or caution in the market.

A sign of market caution amid price stability

Investors who track exchange flows use this type of data to identify momentum shifts. An increasing outflow trend often means more tokens are being stored off exchanges, which usually reflects bullish sentiment. 

When the outflow declines, as it has now, it could imply that enthusiasm is cooling. However, this change occurred over just one day, so it may be too early to call it a trend reversal.

You Might Also Like

This could be seen as a period when short-term traders should look forward to a probable price dip. Long-term investors, though, can find opportunity so long as this decline in outflows translates into price drops that open chances to accrue more tokens at lower levels.

SHIB is currently trading around $0.0000115 and is not showing any significant fluctuation up or down. The decreasing outflow can presently be considered a cooling-off period following massive transaction volumes in the previous weeks.

When outflows begin to rise once more, it could be a sign of renewed confidence. In the meantime, traders will most likely set their sights on wider market trends and imminent sentiment changes.