Shiba Inu (SHIB): -96,000,000,000 in Exchange Flows Halts Selling Pressure

After months of ongoing downside pressure, Shiba Inu is beginning to show signs of relief. Recent market and on-chain data indicate that the asset may be past the most aggressive selling phase, at least temporarily, even though the overall trend is still precarious. Although this change significantly alters $SHIB's short-term outlook, it does not ensure a sustained rally.

Shiba Inu stopped bleeding

Exchange flow data is the most significant advancement. Following a protracted period of net inflows, which are usually linked to holders getting ready to sell, Shiba Inu has started to see outflows take the lead. Moving tokens off exchanges typically indicates a preference for holding rather than selling. In addition to easing immediate sell-side pressure, this reversal sets the stage for price stabilization or recovery in the event that demand arises.

This interpretation is reinforced by price action. Following the formation of a short-term base and a slight increase in volume, $SHIB recently recovered from local lows. The move indicated that sellers are losing steam by pushing the price above short-term moving averages. The asset's structure no longer shows panic-driven distribution, even though it is still below significant long-term resistance levels.

Still not enough

Context is further enhanced by active address data. It appears that participation is not declining along with the price as network activity has remained stable and even slightly improved. This is significant because falling activity and declining prices frequently indicate deeper weakness. In the case of $SHIB, engagement is still present, which raises the likelihood that recent lows could persist.

Long-term moving averages are still sloping downward, and Shiba Inu is still in a wider downtrend on longer time horizons. Sustained exchange outflows and a discernible rise in spot demand would be necessary for any bullish continuation. Rallies may continue to be corrective rather than trend-changing in the absence of those circumstances. Right now, there are two possibilities.

In the better scenario, steady network activity and ongoing exchange outflows enable $SHIB to raise its base, paving the way for a slow recovery. In the less favorable scenario, inflows swiftly resume, indicating that short covering rather than true accumulation was the cause of the recent strength.