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▲ Shiba Inu (SHIB)/ChatGPT Generated Image
While Shiba Inu (SHIB) has recently regained some stability, on-chain indicators surrounding centralized exchanges still point to aggressive position readjustments by market participants. Inflows to exchanges have exceeded outflows, raising the possibility of increased price volatility and sell-off pressure in the future.
U.Today reported on the 9th that Shiba Inu's exchange-related activity has significantly increased even in a relatively calm market environment. According to the original text, Shiba Inu's exchange-related metrics showed a clear increase over the past 24 hours, and the amount of SHIB remaining on centralized exchanges also increased as investors continued to move funds within the market.
On the charts, Shiba Inu is assessed to have entered a recovery phase, attempting to break free from a bearish trend. For most of last year, it traded below long-term moving averages and key resistance levels, but recently it has begun to form a gradual upward structure by attempting to reclaim the 50-day exponential moving average. However, it has not yet broken above the 100-day exponential moving average.
A larger variable identified in this analysis is exchange activity. Recent indicators show that exchange holdings have continuously increased, and both inflows and outflows of Shiba Inu to and from exchanges have also risen. Over the past day, exchange holdings increased by approximately 0.17%. This means that more Shiba Inu remains on centralized trading platforms, which is interpreted as a factor suggesting increased market activity and potential for greater volatility in the future.
Specifically, approximately 427.9 billion SHIB flowed into exchanges, while about 285.7 billion SHIB moved out of exchanges. U.Today evaluated this inflow-outflow imbalance as significant because exchange inflows are often linked to potential sell-off pressure, especially in volatile market environments. As of the 7th, the average exchange inflow decreased by about 15%, but the average outflow decreased by over 62%. This suggests that large holders may be reducing aggressive transfer activities after a period of high liquidity.
The price trend still remains below the 200-day exponential moving average. U.Today analyzed that as long as the 200-day exponential moving average remains a long-term resistance level, it will be difficult for traders to declare a complete trend reversal until Shiba Inu decisively breaks through that area. The possibility of increased volatility was also presented in the current range.
U.Today explained that while exchange indicators show active repositioning by market participants, the improved chart structure indicates that Shiba Inu is no longer in a free-fall phase. If the overall cryptocurrency market momentum remains strong, Shiba Inu could attempt further gains and aim to break out of its current channel. Conversely, if market sentiment deteriorates, increased exchange holdings and high inflows could quickly lead to new selling pressure.
*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.*
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