Shiba Inu showed new signs of decline after a rebound in August. On-chain data indicates that the net inflow into exchanges has turned positive for two consecutive days, and the price of SHIB has once again approached the integer mark of $0.000005, raising market attention to short-term selling pressure.
Two-day net inflow remains high
CryptoQuant Data shows that on August 29, approximately 145.9 billion SHIB coins flowed into exchanges. The so-called positive net inflow means that the number of wallets entering the monitored exchanges exceeded the number leaving, thereby increasing the number of tradable tokens in the market.
The previous day, the net inflow to the SHIB exchange was approximately 261.7 billion coins. Although the volume on the 29th decreased compared to the previous day, it remained positive for two consecutive days, indicating that the selling pressure has not significantly eased.
It should be noted that net inflow does not mean that all of these tokens will be sold immediately. Some of the funds may also be used for market making, margin trading, or position adjustment, but this indicator is generally seen by the market as a signal of increased short-term supply.
Weak momentum after the rebound in August
SHIB once followed the overall rebound of the crypto market in the middle of this month. Data shows that the token was around $0.0000044 on August 18, rose to $0.00000590 by August 21, and then the upward momentum slowed down.
CoinGecko Historical data shows that SHIB closed at around $0.00000519 on August 28, which is about 12% lower than the previous high. This means that some of the gains made in late August have been reversed.
From the trend perspective, this rebound is more driven by the overall improvement in market risk appetite, rather than being catalyzed solely by the Shiba Inu ecosystem. Compared to some mainstream crypto assets, SHIB does not perform exceptionally well during the rebound phase either.
$0.000005 becomes a short-term observation level
The current market focus is on the vicinity of $0.000005. If the price continues to fall below this level, SHIB may further give back the gains seen in late August, and the bearish signals released by the net inflows into the exchange could also be amplified.
However, merely looking at the inflows into the exchanges is not sufficient to determine the subsequent trend. SHIB is still continuing with token destruction, but compared to its circulating supply of about 589 trillion tokens, the current scale of destruction has a relatively limited impact on short-term prices.
Next, the market will continue to observe whether buying interest will reappear around $0.000005, and whether the tokens that have previously flowed into the exchange will lead to further price declines.
