A recent shift in Shiba Inu (SHIB) exchange flows has caught the attention of the cryptocurrency world. After seven consecutive days of positive net inflows, SHIB’s exchange net movement turned negative for the first time in a while. This development suggests that fewer SHIB tokens are being held on exchanges, as more investors move their coins into private wallets.
Positive technical signals emerge
Latest data shows SHIB’s total exchange net outflow reached approximately minus 42.4 billion tokens. Although this figure is not the largest recorded in previous cycles, experts highlight that the change in direction is particularly significant. For most of the past week, inflows to exchanges had dominated, leading to a notable increase in reserves.
Crypto investors typically interpret asset withdrawals from exchanges as a reduction of short-term selling pressure. With fewer SHIB tokens available for immediate sale, sudden price drops become less likely. Analysts note that increased negative net flows often signal a shift as investors start transferring funds to long-term wallets.
Momentum and market dynamics
Technically, Shiba Inu’s charts have painted a brighter picture in recent weeks. Recovering from February lows, SHIB has established a bullish pattern by posting a series of higher lows since early March. The coin price is now approaching the 100-day exponential moving average, a long-standing resistance level, and even closed above short-term resistance. At present, SHIB is trading at around $0.0000064.
Momentum indicators also deliver promising signals. The relative strength index (RSI) is not yet in overbought territory, suggesting further upward potential for the price. As the RSI stays above the neutral zone, buyers may remain in control a while longer.
Experts observe that “the increase in SHIB withdrawals from exchanges and the strengthening technical structure have created a more positive market atmosphere compared to previous weeks. If SHIB holds above its 100-day average, investors may start viewing the current recovery as more than just a short-lived bounce.”
Market expectations and key levels to watch
Despite the progress, SHIB’s price has yet to surpass the 200-day exponential moving average. Achieving this would be a strong signal for the start of a sustained long-term uptrend. Observers caution that SHIB and other meme coins remain very sensitive to overall crypto market movements, particularly the performance of Bitcoin.
Even with robust on-chain data, any deterioration in macroeconomic conditions or a broader crypto sell-off could quickly reverse SHIB’s gains. Therefore, market sentiment remains tied to the wider performance of Bitcoin and major crypto assets.
Short-term easing of selling pressure on exchanges has created a more optimistic outlook for SHIB. The reversal in net flow direction following a stretch of hefty inflows suggests that investor risk appetite is on the mend.
In the coming days, whether the price can hold above the 100-day exponential moving average will be closely monitored. Successfully defending this support level could open the door for continued gains. Nevertheless, the overall mood in the market may still pivot based on the behavior of Bitcoin and other leading cryptocurrencies.
