After more than half a trillion SHIB left exchanges in the past 24 hours, Shiba Inu is displaying a mixed on-chain picture. A positive net exchange flow of about 197 billion SHIB resulted from total outflows of almost 406 billion SHIB, despite exchange inflows exceeding 603 billion SHIB.
Large holders stay relevant
The average outflow size increased concurrently, indicating that large holders are still removing significant amounts of tokens from trading platforms despite an increase in overall exchange reserves. This combination produces an unusual dynamic. Because they show that more tokens are easily accessible for trading, rising exchange reserves are usually seen as a bearish signal.
Elevated exchange withdrawals, however, frequently indicate that investors are accumulating assets with the intention of holding them in self-custody rather than selling them right away. The fact that both trends coexist indicates that there is currently a lot of two-way activity in the market rather than outright distribution. That equilibrium is reflected in price action. Following a dramatic rebound from its July lows, SHIB is currently trading at about $0.00000500.
After last week’s breakout, the token is still above the 26-day and 50-day exponential moving averages, but it is currently consolidating just below the 100-day EMA. Since the start of the year, bullish attempts have been consistently rejected by that moving average, which has become the main resistance level.
Since the Relative Strength Index is above 60, buyers are still in charge of the short-term trend without going into extremely overbought territory. More significantly, the breakout had more technical credibility than earlier attempts at recovery because it was accompanied by one of the biggest volume spikes in several months.
Alongside the increase in trading activity, the on-chain metrics also reveal a slight increase in active sending and receiving addresses, indicating improved network participation.
Buyers are still there
Even though these adjustments are minor, they show that derivatives speculation is not the only factor driving the recent shift. The ability of buyers to absorb the extra supply that appears on exchanges will probably determine the next course.
The present consolidation may serve as the basis for a more extensive recovery if SHIB breaks clearly above the 100-day EMA with another increase in volume. On the other hand, the market might find it difficult to maintain its recent gains if exchange reserves keep rising while purchasing activity declines.
For the time being, the withdrawal of about half a trillion SHIB indicates that larger holders are still participating, but investors should keep a close eye on incoming flows due to the rise in exchange balances. The conflict between available selling supply and accumulation is increasingly driving SHIB’s current price movement.
Be the first to comment