SHIB Rally Hits Roadblock as Exchange Flows Turn Bearish
Shiba Inu's recent rally may be losing steam as it faces selling pressure following its August rebound. Data from CryptoQuant shows that net exchange inflows of approximately 145.9 billion SHIB on Aug. 29 turned positive, indicating more tokens entered tracked exchanges than left them.
This increase in available supply could make it easier for holders to sell their SHIB, potentially leading to a deeper correction. The shift comes after a strong recovery earlier this month, where SHIB climbed from around $0.0000044 on Aug. 18 to $0.00000590 by Aug. 21.
However, the token's advance appeared to benefit more from a wider crypto rebound rather than a purely Shiba Inu-specific catalyst. The bearish flow signal follows a pullback of roughly 12% below its recent peak, with SHIB closing at $0.00000519 on Aug. 28.
The immediate question for traders is whether SHIB can defend the key short-term level of $0.000005. A sustained break below this area could erase more of the late-August recovery and reinforce the bearish message coming from exchange flows.