Shiba Inu's (SHIB) -1,813% Spot Flow Loss Is Not What You Think It Is

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Shiba Inu recently reported a -1,813% move on spot flows, which appears disastrous at first, but the figure alone is deceptive in the absence of context. In reality, it shows a dramatic relative change between inflows and outflows over a brief period of time rather than a true collapse capital. A small baseline can cause percentage-based flow metrics to blow up. The resulting percentage change can reach extreme values like -1,813% without requiring massive absolute volume — if inflows were low during a prior interval and outflows suddenly spike. It is, in essence, a denominator problem. Even a small move results in an exaggerated percentage print when the starting point is near zero. This seems to be exactly what's going on. Shiba Inu is not going through an abrupt systemic collapse related to that number, when looking at the larger market data. In fact, exchange reserves have been increasing; they are currently over 81 trillion SHIB, indicating a rise in the supply of tokens on trading platforms. That usually means that there is more pressure to sell, not necessarily panic, but also not bullish accumulation. SHIB is still trading below important moving averages on the price chart, with the 50 and 100 EMA serving as dynamic resistance. After a protracted decline, the asset recently created a small consolidation structure in an effort to stabilize, but there has not yet been a clear breakout. Momentum indicators are neutral to slightly weak, and the ...