What to Know:
- Shiba Inu recorded a negative exchange netflow of 148.7 billion SHIB, reducing the supply available for immediate selling.
- Weakening trading volume and fading selling momentum suggest bearish pressure is losing strength despite SHIB remaining in a downtrend.
- Declining exchange reserves indicate more holders are moving tokens into self-custody rather than preparing them for sale.
Shiba Inu has recorded one of its largest recent exchange outflows, with 148.7 billion SHIB leaving trading platforms as selling pressure shows signs of easing. According to the latest on-chain data, SHIB exchange reserves have fallen, signaling that some investors are transferring their holdings off exchanges instead of keeping them available for immediate selling
A negative exchange netflow occurs when withdrawals exceed deposits over a given period. Consequently, fewer coins remain available for quick liquidation on trading platforms. Although a single session of large withdrawals does not confirm a market reversal, it often reflects improving investor sentiment and reduced willingness to sell.
The latest movement arrives during a prolonged period of weakness for Shiba Inu. The meme coin has declined nearly 69% over the past year and remains more than 40% lower since the beginning of the year. As a result, speculative trading activity has slowed while overall market participation has become more subdued.
Besides the exchange outflows, shrinking reserves on trading platforms add another layer to the current market picture. Investors typically transfer assets into self-custody when they do not intend to sell immediately. Therefore, declining exchange balances can reduce short-term selling pressure if the trend persists.
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Technical indicators point to fading bearish momentum
The technical outlook also reflects a market where sellers appear to be losing strength. SHIB recently dropped below a rising wedge pattern on the daily chart, reinforcing the prevailing bearish trend.
However, the breakdown failed to trigger a wave of heavy selling. Instead, trading volume has continued to decline as the price moved lower. Consequently, each downward move has attracted less selling participation than previous declines. That pattern often suggests bearish momentum is becoming less convincing, even though buyers have yet to regain control.
Additionally, SHIB continues to trade near historically important support levels. Its Relative Strength Index remains close to oversold territory, indicating that selling pressure may be approaching exhaustion. Even so, the token has not produced a decisive recovery above its short-term and medium-term moving averages.
Source: Tradingview
Market participants will likely watch those resistance levels closely because a sustained move above them would strengthen the case for improving momentum. Until then, the broader technical trend remains bearish despite the encouraging on-chain developments.
The combination of falling exchange reserves, weakening trading volume, and large exchange withdrawals presents a different market structure than earlier phases of the decline. While none of these signals guarantees a reversal, together they suggest that aggressive selling has become less dominant than it was during previous months.
Conclusion
Shiba Inu remains below key technical resistance levels, leaving the broader trend unchanged. However, the withdrawal of 148.7 billion SHIB from exchanges, combined with declining exchange reserves and weakening selling momentum, indicates that bearish pressure is easing as more holders shift toward longer-term custody.
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