Key Insights
Shiba Inu’s exchange outflows surged by 134%, indicating reduced selling pressure and stronger holder positions in the market.
Active addresses increased by 1.03%, signaling that participants are continuing to engage with Shiba Inu rather than abandoning their positions.
Although SHIB remains under resistance, the rise in exchange outflows presents a potential foundation for a bullish recovery.
Shiba Inu’s on-chain metrics have raised expectations for a possible market recovery. A significant rise in exchange outflows points to a shift that often precedes a tradable price surge. In the last seven days, the average exchange outflow for SHIB has increased by 134%, with total exchange outflows rising by 2.02%. This suggests that more SHIB tokens are being withdrawn from exchanges, which typically reduces immediate selling pressure and encourages more holders to maintain their positions.
Exchange Activity Points Toward Bullish Movement
The latest metrics suggest that Shiba Inu’s market behavior is showing strength. In addition to the surge in exchange outflows, active addresses have also increased by 1.03%, signaling that more participants are still engaging with the token rather than abandoning it. While exchange inflows are also up by 2.23%, the fact that outflows are outpacing inflows is an encouraging sign for a potential price rebound.
Despite the positive on-chain activity, Shiba Inu is still facing resistance at key moving averages. The token remains in a wider downtrend, and the price has yet to fully reflect the market's underlying strength. Nevertheless, the increase in exchange outflows, coupled with the slight uptick in active addresses, paints a picture of a market that is positioning itself for a potential bullish recovery.
Bearish Trends and Exchange Reserve Decline
The broader context of this market behavior shows a mix of factors. While the exchange reserve in USD is slightly down, coin-denominated reserves remain flat. This indicates that the market is preparing for a change, although it is not yet clear whether the price will follow suit. The current exchange outflows combined with market participation could lead to a recovery leg if price action aligns with these on-chain trends.
In conclusion, the rise in SHIB’s exchange outflows and the increase in active addresses offer potential for future bullish movement. However, these positive signs are tempered by the ongoing downtrend and resistance at moving averages. While it is still too early to call a definitive recovery, the market conditions are more favorable for a rebound than they have been in recent weeks.
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