Shiba Inu, a well-known meme cryptocurrency launched in 2020, continues to face difficulties on the price chart, with the token trading close to recent local lows after multiple failed attempts at recovery. Despite this ongoing price weakness, recent on-chain metrics indicate positive trends for the underlying network activity.
Seven out of ten on chain indicators turn bullish
According to the latest on-chain analysis, seven of the ten primary indicators monitored for SHIB show bullish signals. This development points to a possible improvement in fundamental network conditions even as SHIB remains under pressure in the broader market.
A key factor is the reduction in exchange reserves, which typically signals lower selling pressure since fewer tokens are available on trading platforms. This trend is reinforced by the Exchange Netflow, which remains negative at approximately -64.8 billion SHIB. Negative netflow suggests that more tokens are being withdrawn from exchanges than deposited, often interpreted as accumulation by investors.
Another indicator, Active Addresses, has risen by over 1% in the last 24 hours. This modest increase in address activity suggests ongoing user engagement, with the network still attracting participants despite the price decline.
Exchange outflows have also exceeded inflows, with about 250.2 billion SHIB withdrawn compared to 185.4 billion SHIB deposited. This data implies that investors are moving more tokens into self-custody instead of preparing them for sale.
Further support comes from Exchange Inflow Mean and Exchange Outflow Mean metrics. Both metrics have increased, but the average size of outflow transactions is notably higher, implying that larger holders are moving sizable amounts of SHIB out of exchanges.
On the technical side, the Relative Strength Index (RSI) for SHIB has emerged from oversold levels and is gradually climbing. While the token remains below significant moving averages, these momentum indicators suggest that bearish sentiment is beginning to ease.
However, three of the ten main signals remain bearish to neutral. SHIB continues to trade below its 50-day, 100-day, and 200-day moving averages. Exchange reserve values in US dollars have fallen along with the token’s price, and inflows to exchanges remain high, reflecting ongoing caution among market participants.
Despite multiple attempts at price recovery being rejected and the technical outlook for Shiba Inu remaining bearish, analysts note a clear divergence between weak chart performance and improving on chain metrics.
On chain trends point to potential recovery
If accumulation continues and exchange-held balances keep declining, some market observers believe SHIB could be preparing for a more significant rebound once broader market sentiment improves. For now, on-chain participants appear notably more optimistic than the token’s price chart might suggest.
Shiba Inu is an Ethereum-based meme coin that has built a strong online community and gained widespread attention alongside similar meme tokens. While its price has struggled recently, network activity and accumulation trends may offer hope for a future turnaround.
Mini dictionary: Relative Strength Index (RSI), A momentum indicator that measures the speed and change of price movements, commonly used by traders to identify overbought or oversold conditions in a market.
| Indicator | Current Status | Implication |
|---|---|---|
| Exchange reserves | Decreasing | Lower selling pressure |
| Exchange netflow | -64.8 billion SHIB | Accumulation trend |
| Active addresses | +1% (last 24h) | Increased user activity |
| Exchange outflow/inflow | Outflow 250.2B/ Inflow 185.4B | More tokens into self-custody |
| SHIB price vs MAs | Below all major MAs | Bearish technical outlook |
