Key Insights:
- Shiba Inu is still constrained by major moving averages, signaling ongoing negative trend pressure.
- Significant net outflows indicate reduced selling pressure, suggesting accumulation among investors.
- Exchange reserves have dropped slightly, while transfer activity shows modest signs of growth.
Shiba Inu (SHIB) continues to struggle beneath crucial moving averages, including the 50-day, 100-day, and 200-day EMAs, according to CryptoQuant. These indicators continue to cap the price action, indicating the coin has not yet emerged from its prolonged downtrend. Despite a recent bounce, SHIB has not broken through significant resistance levels, leaving the overall trend still negative. However, there are positive signs beneath the surface that could point to potential shifts in the market.
One notable change in SHIB’s on-chain data is the exchange net outflow of about 19 billion tokens in the past 24 hours. This suggests that a portion of investors are shifting their holdings from exchanges to private wallets. Typically, this behavior indicates either accumulation or a long-term hold strategy, which could reduce selling pressure in the future. While not a massive shift, the outflow suggests a potential supply squeeze, as the tokens are removed from active markets.
Decrease in Exchange Reserves and Transfer Activity
Alongside the significant outflow, exchange reserves of SHIB have dropped to approximately 81.62 trillion tokens. This drop aligns with a slight increase in transfer activity and active addresses, which have seen a nearly 1% rise. While these changes are still relatively small, they hint at a sustained level of network activity, even though the price action has not reflected it. This increasing activity could eventually contribute to more demand if trends continue.
While SHIB has shown some positive signs in terms of network activity, it continues to face mounting resistance from key technical levels. Despite a bounce, the price remains below several important EMAs, and the candles on the charts remain light, indicating weak conviction in the recent price moves. As a result, SHIB has not been able to overcome key resistance zones, and its rally lacks the volume needed to turn the market in its favor.
The Outlook for SHIB’s Short-Term Future
The overall market sentiment for SHIB remains cautious, but the decreasing selling pressure could lead to an eventual price rebound if demand picks up. The key factor to watch in the coming days is whether exchange reserves continue to decline and if trading volume starts to increase. If both conditions are met, SHIB could see a more sustained bounce, though for now, its price continues to face strong resistance.
