Shiba Inu Switches to 'Net Outflow' in a Week...A Test for Final Resistance

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB)'s net inflow to exchanges turned negative for the first time in 7 days. This was interpreted to mean that short-term selling pressure could decrease as more assets left exchanges than entered.

U.Today reported on the 13th that Shiba Inu's net inflow to exchanges turned negative for the first time in 7 days. According to recent exchange flow data, Shiba Inu's total net inflow to exchanges dropped to approximately minus 42.4 billion SHIB. While not an extreme amount compared to previous cycle highs, this was presented as a significant change as it broke the trend of positive inflows and increasing exchange holdings that had continued for a week.

A positive net inflow to exchanges generally means that investors are moving tokens to exchanges for selling or active trading. Conversely, a negative net inflow is interpreted to mean that investors are moving tokens to long-term storage wallets or personal wallets. This can lead to a decrease in liquidity available for short-term selling.

This change is even more notable as it coincides with an improvement in Shiba Inu's technical structure. Shiba Inu has been forming an orderly upward structure on its chart since recovering from its February low and recently broke through a short-term resistance line. Since March, the trend of higher lows has continued, and the price is moving towards the 100-day exponential moving average near $0.0000064.

The 100-day exponential moving average has acted as a major resistance line, limiting Shiba Inu's bullish momentum in recent months. As the shift to net exchange outflow and short-term technical structure improvement occurred simultaneously, analysis suggests that buying pressure could push the price into higher ranges if the overall market environment remains stable. The Relative Strength Index (RSI) is also moving above the neutral zone, not yet entering overbought territory.

However, it is difficult to say that the long-term trend has completely reversed. Shiba Inu is still trading below the 200-day exponential moving average, and due to its meme coin nature, it is heavily influenced by speculative sentiment and the direction of Bitcoin (BTC). If the macroeconomic environment deteriorates or the overall cryptocurrency market turns bearish, Shiba Inu's upward momentum could quickly weaken despite improved on-chain metrics.

U.Today assessed that the combination of reduced net exchange inflow and improved technical structure has made Shiba Inu's environment the best it has been in recent weeks. If Shiba Inu breaks above the 100-day exponential moving average and sustains itself there, the market may start to view this recovery as a more significant trend than a simple short-term rebound.

*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.*