According to data from CryptoQuant, Shiba Inu has experienced a staggering 335% increase in its exchange Inflow, which is the seven-day moving average of coins flowing into exchanges in just one day. The short-term price trajectory of $SHIB may be significantly impacted by this spike, which represents a significant change in market behavior.
Shiba Inu's widespread sell-off
An increase in exchange inflow usually means that investors are shifting their holdings from private wallets to exchanges, which is frequently a sign of more selling pressure. But in the case of Shiba Inu, the price has thus far stayed very steady, circling around $0.0000102, indicating that the inflow might not always result in a widespread sell-off.

It might instead show that major holders are getting ready for a lot of trading, possibly to take advantage of volatility rather than sell out of the market. According to the chart, $SHIB recently recovered from its local low around $0.0000090, taking back the psychologically significant $0.0000100 mark.
Shiba Inu breaks out
With a breakout above $0.0000112, the token's current movement within a midterm descending wedge pattern could validate a bullish reversal. The token is still oversold according to the RSI, which is still below 40, allowing for a momentum-driven recovery. Although volume has marginally increased over the last two sessions, the true test will be whether $SHIB can maintain buying interest despite the surge in inflows.
Bulls may take advantage of the extra liquidity to fuel a short squeeze rally, which would push $SHIB back toward $0.0000115-$0.0000120. On the other hand, the token runs the risk of retesting support close to $0.0000090 if inflows cause panic selling.
To put it briefly, the 335% increase in exchange inflows is a crucial indicator that might herald a precipitous sell-off or a huge upward move. Shiba Inu's next big move is probably not far off, so traders should keep an eye on how the market responds to this surge of on-chain activity.
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