Shiba Inu has seen a major shift in its on-chain activity, with netflows turning negative for the first time in months after a prolonged period of selling. Approximately 148.7 billion SHIB tokens have exited centralized exchanges, marking one of the largest recent outflow events for the token.
Negative netflows signal changing sentiment
On-chain tracking now shows SHIB’s exchange netflow at -148.7 billion tokens. In practice, negative netflows indicate that more tokens are leaving exchanges than being deposited, reducing the immediate supply available for trading or selling. While a single day of withdrawals does not automatically imply a trend reversal, such moves often suggest investors are becoming less inclined to sell, as they opt for self-custody.
This shift comes against the backdrop of a difficult year for SHIB. The token has dropped nearly 69% over the past 12 months and more than 40% since the start of the year. As a result, speculative trading activity has declined, and market participation has thinned. The technical chart further highlights this transition: SHIB recently broke down from a rising wedge pattern on its daily timeframe, typically a bearish signal.
Selling pressure shows signs of exhaustion
Despite the bearish formation, the anticipated follow-through from sellers has failed to materialize in force. Trading volumes have diminished steadily, and each push to new lows has attracted fewer willing sellers. This gradual decline in volume and sell-side momentum often characterizes market bottoms, which generally form not at the height of fear but after prolonged exhaustion and fatigue among sellers.
SHIB’s Relative Strength Index (RSI) is currently hovering near oversold territory, and prices have gravitated toward major historical support zones. Although a decisive breakout above key short-term and medium-term moving averages has yet to occur, the reduction in aggressive selling has become more pronounced.
Declining exchange reserves highlight self-custody
The substantial outflow of 148.7 billion SHIB from exchanges has also led to a notable decline in overall exchange reserves. This is a possible indicator that investors are choosing to transfer their tokens away from exchanges and into private wallets rather than preparing them for sale. Such movement can impact market dynamics by limiting the supply available for immediate trading.
Mini dictionary: Netflow, an on-chain metric tracking the difference between tokens entering and leaving cryptocurrency exchanges. Negative netflow indicates more tokens are withdrawn than deposited, often reflecting investors’ preference for holding rather than selling.
| Metric | Current Status | 12-Month Change |
|---|---|---|
| SHIB Price | Near historic support | -69% |
| Year-to-Date Change | Ongoing downtrend | -40% YTD |
| Exchange Netflow | -148.7 billion SHIB | One of the largest outflows |
While bearish momentum persists, the combination of shrinking exchange holdings, weakening sell pressure, and sustained downtrend fatigue suggests that market conditions may be evolving. Market watchers are now observing closely to see if this could form the basis for a potential reversal after months of notable declines.
Despite the absence of a clear breakout above key moving averages, the lack of strong selling activity and historic outflows from exchanges indicate that traders are becoming more inclined to hold SHIB, signaling a potential shift in underlying sentiment.
