Shiba Inu Net Flow Increases by More Than 500%, Here’s What It Means

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Arman Shirinyan

Inflow volume increases as Shiba recovers by 20% after hitting the local bottom.

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Shiba Inu is continuously moving into the recovery phase with growth of 20% after losing 70% of its value since it reached the ATH in late October. According to such market data As the net flow of the asset, the token rally may not be over yet as more people are moving their funds to the meme-based asset.

What is net flow and how does it affect the market?

With the asset constantly gaining and losing funding from traders and investors, net flow is the metric used to determine the current flow of assets. Whenever a coin or token is faced with a positive net flow (inflow), traders typically see positive price action in the market.

Shiba inu whale statistics
Fountain: WhaleStats

If the net flow shows a negative number, this indicates that the asset is losing funding or, simply, traders are selling and closing their positions, creating the outflow of money that generally negatively impacts the price of the asset.

Shib net flow

With the strong rebound in trade volume and 20% price increase, more traders and whales have decided to enter Shiba Inu and open new positions causing a sharp increase in net flow.

The current net flow of SHIB tokens stands at $ 4.3 million for the 1,000 largest Ethereum wallets. Traders will most likely see high flow numbers until there is purchasing power in the Shiba Inu market.

In addition to the increase in net flow, Shiba Inu also faces a positive trend in trading volume, showing an increase of 50% compared to the previous week. With the volume surge and the right sentiment, the Shiba Inu rally could continue, at least for now, market indicators such as volume, inflows and whale stocks suggest so.

Source: https://u.today/shiba-inu-net-flow-increases-by-more-than-500-heres-what-it-means

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