Shiba Inu exchange outflows plunge 21 percent in 24 hours

Despite recent sluggishness in price, Shiba Inu is showing a notable shift in on-chain activity. In particular, exchange outflows have sharply decreased over the past 24 hours, signaling a drop in investor interest in withdrawing SHIB from trading platforms.

Marked slowdown in outflows

The latest blockchain data reveals that the average amount of Shiba Inu tokens withdrawn from exchanges has fallen by 21.5 percent within a single day. Compared to the high withdrawal levels seen in previous weeks, this points to a rapid deceleration in tokens leaving exchanges. The data suggests that investors, especially large holders, are choosing to wait rather than move their assets amid ongoing market uncertainty.

Periods of rapid declines in exchange reserves typically coincide with strong price swings, but the last 24 hours have brought a period of unusual calm. Current data shows that exchange reserves are holding steady at 80.8 trillion SHIB, yet transfer activity has slowed considerably.

Weakness in technical indicators persists

From a technical standpoint, Shiba Inu has broken downward out of a rising wedge pattern that has been in place since March. The price is now trading below both its short and medium-term moving averages, while the 200-day moving average remains above the latest price. This signals ongoing technical weakness for the token.

Nonetheless, with the recent price decline, trading volumes have also cooled, and the token has managed to remain near the key support level at $0.00000550. This moderation in selling speed is being interpreted as decreasing selling pressure for now.

Mini-glossary: A rising wedge pattern is a technical analysis formation where prices record higher lows and higher highs, but upward momentum gradually weakens. It often signals a risk of a downward breakout.

Market participants remain cautious

This drop in SHIB transfer activity and reduced outflows is typically observed when major investors prepare for a shift in market sentiment. Such a divergence between metrics frequently occurs ahead of pivotal changes in overall investor mood.

The steep decline in SHIB withdrawn from exchanges in recent days highlights that both sudden selling and buying pressures are limited, with market participants taking a wait-and-see approach for now.

Critical levels and resistance bands

If exchange outflows continue to remain low, and if Shiba Inu can hold above the $0.00000550 support, a new upward attempt could materialize in the coming days. If that happens, the price will likely face resistance between $0.00000630 and $0.00000650.

Breaking above this resistance range may entice short-term traders back into high-volume transactions. However, if overall fragility persists in the broader crypto market, sudden losses remain a risk for popular meme tokens like SHIB.