164 Billion Shiba Inu (SHIB) in 24 Hours: Netflows Finally Ease

On-chain data indicates that exchange netflows of Shiba Inu have started to ease considerably. The most recent metrics show that SHIB recorded a total exchange netflow of about -164 billion tokens over the previous 24 hours at the time of writing, indicating that more tokens are still leaving exchanges than entering them.

Netflows spike up

Exchange netflows quantify the variation in tokens entering and leaving centralized trading platforms. Investors withdrawing assets from exchanges is usually indicated by negative netflows, which frequently lessen the immediate sell-side pressure. The most recent reading indicates a significant change from the higher exchange activity observed earlier this month, even though a single day of data does not prove a trend reversal.

The improving narrative is supported by the larger on-chain picture. Over the past day, exchange reserves have decreased by an additional 0.19%. Concurrently, there have been slight increases in active addresses, transfer activity, and velocity, indicating that network participation is still steady despite poor price performance.

However, SHIB still faces many difficulties from a technical standpoint. The meme coin is trading close to the lower edge of a descending structure that has dominated price movement since March, according to the daily chart. Due to recent unsuccessful attempts to rise above the 20- and 50-day moving averages, SHIB is currently below all significant trend indicators.

Key support for the price

An important support zone close to the $0.0000055 area is currently being tested by the asset. Although they are still weak, momentum indicators are approaching oversold levels. When selling pressure wears off, SHIB has historically seen brief relief rallies; however, these movements seldom turn into long-term uptrends without greater market-wide participation.

The next thing that investors should keep an eye on is whether the decline in exchange netflows persists for a number of consecutive sessions. The market may start to build a stronger accumulation base if exchange reserves continue to fall while active addresses either stay the same or increase.

Buyers returning to the support price and regaining important resistance levels above the current range will determine whether that eventually turns into a significant recovery.