Shiba Inu (SHIB) has continued its prolonged downward trend, trading below all major moving averages in recent days. However, analysts are paying renewed attention to the token’s short-term outlook after a noticeable easing in selling pressure. This softening of sell-offs hints at the possibility that SHIB may be entering a new phase as it searches for direction.
Narrow range trading and weak rebounds
Despite this change in selling momentum, there are still no clear signs of a robust recovery in the overall structure of SHIB’s price. The token has been moving horizontally in a slightly upward and narrow channel, yet key short-term resistance levels have proved difficult to overcome. While SHIB is logging marginally higher lows, the broader uptrend remains fragile and unimpressive, reflecting an ongoing lack of enthusiasm and low trading volume in the market.
A glaring absence of meaningful buying activity is another point of concern. Although SHIB has seen minor price upticks, the volume of buyer-driven trades has yet to show significant growth, signaling investors are hardly rushing to build large positions. As a result, analysts warn the price may continue to fluctuate within the same tight band or creep lower in the near term.
Volume confirmation and lack of confidence
Experts hold that a genuine recovery in SHIB’s price cannot be sustained unless it is supported by a solid increase in market volume. The ongoing modest attempt at a rebound is generally viewed as weak because it lacks sufficient backing from trading activity. Investors hunting for concrete bottom levels are advised to pay close attention to the mismatch between SHIB’s price actions and market volumes.
Commentators point out that because the current market move is not supported by volume, confidence remains low and prospects for a strong recovery are limited.
Exchange flows and on-chain signals
On-chain data offers a more nuanced perspective. Recently, SHIB reserves on exchanges have grown, with net inflows remaining positive. This means that more SHIB is moving onto exchanges than being withdrawn, suggesting a rising inclination among holders to deposit their tokens on trading platforms. Historically, such patterns have been linked with increased intentions to sell, a trend that is generally seen as negative by market observers.
Nevertheless, the scale of these exchange inflows is meaningful. The amount of SHIB moving to exchanges currently is noticeably lower than in previous heavy sell-off periods. At the same time, withdrawal volumes are also rising, resulting in more balanced net flows. The net effect is that, although selling pressure has eased compared to earlier phases, there is still no sign of sustained buying enthusiasm among market participants.
