What to Know:
- Nearly 258 billion SHIB were left on exchanges, reducing immediate selling pressure.
- Exchange reserves declined as investors continued moving tokens off-platform.
- SHIB entered oversold territory while recovery signals gradually strengthened.
Shiba Inu holders withdrew nearly 257.9 billion SHIB from cryptocurrency exchanges within the last 24 hours, creating one of the token’s largest negative netflow readings in recent weeks. The development has strengthened signs of a potential recovery as exchange balances continue to decline despite ongoing weakness in SHIB’s price.
Recent on-chain metrics showed that withdrawals significantly exceeded deposits across major trading platforms. Exchange netflow measures the difference between assets entering and leaving exchanges. When withdrawals outpace deposits by a large margin, investors often move tokens into private wallets instead of preparing them for immediate sale.
Consequently, the latest movement has reduced the amount of SHIB available for instant liquidation. A shrinking exchange supply is often viewed as a positive signal because it can lower short-term selling pressure.
The large outflow occurred while SHIB remained under pressure on the price chart. The token recently fell below an ascending channel that had supported its price action since March. The breakdown pushed SHIB beneath several key support levels and increased bearish sentiment across the market.
Exchange Reserves Point to Reduced Selling Pressure
Exchange reserve metrics provided additional support for the improving outlook. Total SHIB balances held on exchanges declined by 0.32% during the same period, indicating that coins continued leaving trading platforms.
Additionally, SHIB’s Relative Strength Index dropped to around 26, placing the token in oversold territory. Traders often monitor this indicator because readings below 30 can suggest that selling momentum is becoming exhausted.
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Moreover, the combination of declining exchange reserves and oversold conditions has historically attracted attention from market participants looking for possible rebound opportunities. While these indicators do not guarantee a recovery, they can signal a shift in market dynamics.
Despite the encouraging on-chain activity, SHIB still trades below its 50-day, 100-day, and 200-day moving averages. Those indicators continue trending downward, showing that the broader market structure remains weak.
Source: Tradingview
Furthermore, any recovery attempt will likely face resistance between $0.0000053 and $0.0000060. However, the withdrawal of nearly 258 billion SHIB has reduced exchange supply and strengthened recovery signals, creating a more supportive environment than recent price action alone would suggest.
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