"It's a Bear Market, but Holders Withdrew"...Shiba Inu, is Exchange Net Outflow a Spark for Rebound?

▲ Shiba Inu (SHIB)

Despite a price downturn, 207.9771 billion SHIB have been withdrawn from exchanges, showing conflicting signals of selling pressure and accumulation for Shiba Inu (SHIB).

According to U.Today on May 27 (local time), Shiba Inu holders are actively withdrawing tokens from exchanges amidst recent cryptocurrency market volatility. U.Today stated that moving tokens off exchanges is often linked to the flow of purchasing and self-custody, and recent exchange activity indicates sustained demand for Shiba Inu.

According to CryptoQuant data, Shiba Inu's net outflow from exchanges increased by over 5% in the past day. The net amount withdrawn from exchanges during the same period was recorded at 207.9771 billion SHIB. This signifies a clear difference between the volume of tokens flowing into exchanges and those moving out.

U.Today analyzed that this trend suggests an increase in buying activity by holders. The increase in Shiba Inu's net outflow has continued for the past few days and is interpreted as a sign of lingering demand for Shiba Inu even in a sideways market.

However, the price trend diverged from on-chain signals. While Shiba Inu's exchange activity showed bullish signals, its price remained in bearish territory since last week. As of the time of writing, Shiba Inu was trading around $0.0000054, contrasting with the common trend where increased buying activity typically accompanies price surges.

The discrepancy between increased net exchange outflows and a bearish price has raised concerns in the cryptocurrency community. However, U.Today reported that some analysts view this trend as a potential signal for an upcoming bullish trend. Shiba Inu is currently in a phase where short-term bearishness and holder demand are simultaneously present, with an increase in token movement off exchanges despite downward price pressure.

*Disclaimer: This article is for investment reference only and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*