Shiba Inu's Recovery Stalls as 1 Billion Tokens Flood Exchanges

Shiba Inu's recent recovery from its September slump appears to be under threat as exchange inflows have increased significantly. According to on-chain data, approximately 1.10 billion SHIB was deposited into exchanges in a single day, with the top 10 transactions totaling around 5.40 billion tokens.

This surge in deposits is concerning for investors, as it indicates that more SHIB tokens are becoming available for sale. However, the data also shows that exchange outflows have increased by 2.24%, suggesting that some holders may be withdrawing their tokens from exchanges.

The netflow is still negative, meaning that withdrawals continue to outweigh deposits. The price of SHIB has already declined, trading around $0.00000568 after being rejected from the $0.0000060, $0.0000062 region.

SHIB's recent drop has returned its price to the 200-day moving average at $0.0000056, $0.0000057. If SHIB can maintain this level, it could be seen as a retest of the September breakout. However, if the price breaks below $0.0000056, it would be detrimental and expose the token to further selling pressure.