Shiba Inu (SHIB) is showing early signs of a potential recovery as a key on-chain metric turns positive. This comes amid continued volatility across the broader crypto market.
Data shows that SHIB exchange flows have shifted into negative territory over the past day. This indicates that more tokens are leaving exchanges than entering them, often seen as a sign of rising demand.
According to CryptoQuant, Shiba Inu’s net exchange flow stood at around minus 31.7 billion SHIB as of Jan. 25. This means over 30 billion tokens were withdrawn from exchanges rather than sent in for selling.
The shift suggests that investors are buying SHIB and moving their tokens into private wallets. This behavior often points to reduced selling pressure and longer holding intentions.
The metric turned positive even as SHIB remained under price pressure. At the time of writing, Shiba Inu was down about 1.45% over the last 24 hours, reflecting the broader market downturn.
Despite the price decline, the exchange flow data hints that the correction could be nearing its end. Reduced inflows to exchanges suggest fewer holders are preparing to sell.
The trend also signals a change in sentiment among both small and large holders. Instead of panic selling, many appear to be holding onto their tokens amid growing demand.
If this pattern continues, it could support a stronger price move in the near term. For now, the data has raised cautious optimism that Shiba Inu may be preparing for a rebound.
