Shiba Inu, 'Net Outflow' in a Week...Last Resistance Testbed

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB)'s net inflow to exchanges has turned negative for the first time in 7 days. This has led to the interpretation that short-term selling pressure may decrease as more tokens are moving out of exchanges than into them.

U.Today reported on the 13th that Shiba Inu's net inflow to exchanges turned negative for the first time in 7 days. According to recent exchange flow data, Shiba Inu's total net inflow to exchanges dropped to approximately minus 42.4 billion SHIB. While not an extreme scale compared to the peak of previous cycles, this is presented as a significant change as it breaks the trend of positive inflows and increasing exchange reserves that lasted for a week.

A sustained positive net inflow to exchanges generally means that investors are moving tokens to exchanges for selling or active trading. Conversely, when net inflow turns negative, it is interpreted as investors moving tokens to long-term storage wallets or private wallets. This can lead to a decrease in liquidity available for short-term selling.

This change is even more noteworthy in conjunction with the improvement in Shiba Inu's technical structure. Shiba Inu has formed an orderly upward structure on its chart after recovering from the February low and has recently broken through a short-term resistance level. The trend of continuously raising lows has continued since March, and the price is moving towards the 100-day exponential moving average near $0.0000064.

The 100-day exponential moving average has acted as a major resistance level that has limited Shiba Inu's bullish momentum in recent months. As the shift to net exchange outflow and short-term technical structure improvement occur simultaneously, analysis suggests that if the overall market environment remains stable, buying pressure could push the price into higher ranges. The Relative Strength Index is also moving above the neutral zone, not yet entering the overbought territory.

However, it is difficult to say that the long-term trend has completely reversed. Shiba Inu is still trading below the 200-day exponential moving average, and due to its meme coin nature, it is heavily influenced by speculative sentiment and the direction of Bitcoin (BTC). If the macroeconomic environment deteriorates or the overall cryptocurrency market turns bearish, Shiba Inu's upward momentum could quickly weaken, even with improved on-chain indicators.

U.Today assessed that the combination of decreased net exchange inflow and improved technical structure has made Shiba Inu's environment the best it has been in recent weeks. If Shiba Inu breaks above the 100-day exponential moving average and sustains itself above it, the market may start to view this recovery as a more significant trend than just a short-term rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*