After a period of significant bearish pressure, the Shiba Inu (SHIB) market is showing strong signs of renewed demand, coinciding with a sharp price recovery. Data from on-chain analytics platform CryptoQuant reveals a critical shift: as of February 7, SHIB's netflow across all supported cryptocurrency exchanges stood at -212,479,300,000 SHIB. This substantial negative figure indicates that over 212 billion more tokens were withdrawn from exchanges for buying purposes than were deposited for selling over a 24-hour period.
This on-chain metric suggests a resurgence of investor optimism, with traders demonstrating a greater willingness to accumulate SHIB rather than liquidate holdings. The demand surge followed a volatile period for the broader crypto market, which saw major assets, including meme coins like SHIB, experience significant price plunges.
The renewed interest has translated into a rapid price movement. SHIB produced one of the market's fastest short-term recoveries, bouncing approximately 23% in just a few hours after enduring nonstop downward pressure. Analysts attribute this explosive move more to basic market mechanics following severe overselling than to a sudden change in fundamentals. With the token trading in extremely oversold territory and liquidity drying up, even a slight infusion of buying pressure triggered a disproportionate price reaction.
Following this rapid resurgence, where SHIB saw daily increases of over 15%, the asset's momentum has cooled. It is currently showing a more modest 24-hour gain of 0.85%. Despite this cooldown, the exchange flow data indicates that underlying demand remains incredibly high. However, exchange reserves are still elevated, suggesting available supply for sale and pointing to a potentially erratic recovery path. For a sustainable recovery, SHIB needs to reclaim key resistance levels and rise above its medium-term moving averages.
