Shiba Inu Net flow Increases for more than 500%, Here's What it Means

Shiba Inu Net flow Increases for more than 500%, Here's What it Means

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

What's net flow and how does it affect the market

With the asset constantly gaining and losing funding from traders and investors, the net flow is the metric used for determining the current flow of assets. Whenever a coin or a token faces a positive net flow (inflow), traders usually see positive price action on the market.

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 money outflow that usually negatively impacts the asset's price.

Shib's net flow

With the strong spike in the trading volume and the 20% price increase, more traders and whales have decided to enter Shiba Inu and open new positions that cause a strong net flow increase.

The current net flow of SHIB tokens remains at $4.3 million for the 1,000 largest Ethereum wallets. Traders will most likely see elevated flow numbers until buying power is present on the Shiba Inu market.

In addition to increased net flow, Shiba Inu is also facing a positive tendency in trading volume, showing a 50% increase compared to the previous week. With increasing volume and the right sentiment, the Shiba Inu rally might continue—at least for now, market indicators like volume, inflows and whale balances suggest so.

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