Shiba Inu (SHIB) has continued its prolonged period of weak market performance, but recent on-chain data suggests the asset may be nearing a point of equilibrium after weeks of selling pressure. According to figures from CoinGlass, activity in the spot market is now drawing particular attention.
Technical outlook and short-term trends
Daily charts show SHIB still trading below all its major moving averages. Most recently, the price dipped below the lower boundary of a short-term rising channel, reinforcing sellers’ dominance in the market. The formation of lower highs and lows has persisted for a while, underlining the ongoing downward trend in SHIB’s price action.
Spot market movement and exchange outflows
Still, significant changes have surfaced in the on-chain data. Notably, net flows in the spot market have surged by 283% over the short term, signaling a marked increase in direct SHIB trading activity. Since spot transactions reflect actual changes in token ownership, they are considered more impactful than derivatives trading.
Analysts note that “there is serious activity in the spot market, which could prove decisive for liquidity and demand in the near term.”
Additionally, SHIB holdings on exchanges are nearing the 80 trillion mark, meaning fewer tokens are available for immediate trade on these platforms.
Mini glossary: CoinGlass is a widely used analytics platform providing real-time on-chain and derivatives data across cryptocurrency markets.
The latest figures indicate that 580 billion SHIB tokens have been withdrawn from exchanges, while the inflow has stood at 461 billion. Typically, when tokens leave exchanges, it is seen as a sign of less selling pressure and increased inclination by investors to hold assets for the longer term.
| Metric | Value |
|---|---|
| Exchange Outflows | 580 billion SHIB |
| Exchange Inflows | 461 billion SHIB |
| Exchange Reserves | Nearing 80 trillion SHIB |
| Spot Net Flow Increase | 283% |
Derivatives market and broader market conditions
On the derivatives front, the picture is more complex. Net inflows for SHIB futures trading have been irregular and sometimes negative, with liquidation volumes remaining low. This pattern suggests that the market is not experiencing either a sudden sell-off or a rapid recovery.
Broader uncertainty continues to overshadow crypto markets. After a recent rally, Bitcoin has moved into a period of sideways trading, while altcoin investors have struggled to identify a clear direction. Capital and liquidity seem to be concentrating in select cryptocurrencies and geographic regions during this transition.
Key indicators: Balance and potential bottom signals
Falling exchange reserves, rising outflows, and the rapid upturn in spot trading signal a softening of selling pressure on SHIB. Yet, experts warn it is still too soon to confirm a sustained recovery. If market conditions stabilize and Bitcoin avoids a sharp correction, Shiba Inu might find a local bottom sooner than anticipated.
