What to know:
- SHIB exchange outflows reduced selling pressure after seven consecutive inflow sessions.
- Buyers targeted crucial resistance levels while momentum indicators remained strongly supportive.
- Broader crypto conditions still threaten SHIB despite improving technical market structure.
Shiba Inu recorded negative exchange netflows for the first time in seven days, signaling reduced selling pressure across the market. According to CryptoQuant, roughly 42.4 billion SHIB left exchanges, strengthening speculation that bullish momentum could continue building during upcoming sessions.
Although previous market cycles produced larger outflows, traders still considered the latest shift important because it interrupted a sustained period of rising exchange reserves. In crypto markets, investors often transfer tokens away from exchanges when they plan to hold assets longer.
Consequently, declining exchange reserves usually reduce short-term liquidity available for sales. That trend has now improved sentiment surrounding SHIB after weeks of unstable price action. At the same time, SHIB continued strengthening technically after recovering steadily from its February lows.
The token recently climbed above important short-term resistance levels while maintaining a pattern of higher lows since March. That structure has encouraged traders searching for stronger upside continuation.
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SHIB Bulls Focus on Major Resistance Zone
Current trading activity placed SHIB near the $0.0000064 range while buyers attempted to push prices toward the 100-day exponential moving average. That resistance level limited bullish momentum for months, making the ongoing move especially important for market participants.
Additionally, momentum indicators continued to support bullish sentiment. Relative Strength Index readings remained above neutral territory without entering overheated conditions. Because of that, traders believe SHIB still has room for additional upside if broader crypto conditions remain supportive.
Source: Tradingview
However, SHIB still trades below its 200-day exponential moving average, meaning the broader trend has not fully turned bullish. Meme coins also remain highly sensitive to Bitcoin’s direction and wider market sentiment.
Even so, the combination of declining exchange reserves and improving technical structure has increased expectations for a larger rebound. If buyers successfully break above the 100-day EMA, traders may begin treating the current recovery as a stronger trend reversal instead of a temporary bounce.
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