Shiba Inu Surges 1,153% in Spot Netflows Amid Price Rebound

Shiba Inu (SHIB) experienced a notable surge in spot netflows, with a 1,153% increase in the last hour. This rise was driven by $144,380 in inflows compared to $108,020 in outflows, resulting in a net inflow of $36,370 according to TradingView data. The token's price turned green after several days of decline, reaching an intraday high of $0.00000864 as reported.

Traders observed the rebound as a potential sign of accumulation, though broader market conviction remained limited. At the time of reporting, SHIB was up 2.31% in the last 24 hours but still down 8.06% weekly according to market data. The inflows coincided with a short-term price rebound, yet deeper buying conviction did not fully emerge.

Market watchers noted that the buying pressure lifted SHIB to a high of $0.00000864 early Tuesday but did not sustain the movement. While the inflows were significant, they were not enough to spark a broader trend, leaving traders awaiting clearer catalysts according to analysis.

Why Did This Happen?

The surge in SHIB spot netflows coincided with a brief price rebound, signaling a potential shift in market sentiment. The inflows were driven by spot buyers, who pushed the price above key technical levels. The 23-day simple moving average crossed above the 50-day SMA, suggesting a short-term bullish setup.

However, the rally was not accompanied by a sharp increase in volume, which limited the strength of the move. Some analysts suggested that the inflows might not reflect widespread conviction but rather opportunistic buying amid a pullback according to market analysis. The token's price rebounded above the 50-day moving average, a level that had previously acted as a support as data shows.

How Did Markets React?

The market reacted cautiously to the SHIB rebound. While the token's price turned green, broader crypto sentiment remained cautious. Spot flows in the Asian session showed a burst of buying but failed to generate sustained momentum according to reports. The overall market was still reeling from recent outflows, with institutional investors showing limited appetite for risk-on assets.

Traders focused on whether SHIB could break out of its consolidation range. The token had been trading between $0.0000083 and $0.0000089, with a key resistance level at $0.00000900. A sustained break above this level would signal renewed bullish momentum according to technical analysis.

What Are Analysts Watching?

Analysts are closely watching whether SHIB can maintain its current momentum. Whale activity has been a mixed signal, with a 111% increase in transactions for SHIB. However, this activity has not translated into a clear directional move, as some large holders have been moving tokens back onto exchanges according to market data.

The next key level to watch is the 200-day EMA at $0.00001054. A breakout above this level would open the door to a potential 22% gain. Conversely, a failure to hold the $0.00000810 level could push SHIB into a deeper correction according to technical indicators. Market participants are also monitoring the broader macroeconomic environment, including inflation data and potential Fed rate cuts, which could influence risk appetite as market analysis indicates.

At the time of writing, SHIB was trading at $0.0000086, up 2.31% in the last 24 hours. The token remains down 8.06% on a weekly basis, with further consolidation likely unless new catalysts emerge according to current data. Traders are advised to watch key technical levels and on-chain activity for signals of renewed momentum or further weakness.