Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu is once again showing signs of heightened activity as exchange outflows surge while price volatility begins to return. According to recent on-chain data, SHIB's seven-day average exchange outflow jumped by more than 126%, one of the largest increases recorded in recent weeks.
The key signal for SHIB
Exchange outflows measure the amount of cryptocurrency being withdrawn from trading platforms into private wallets. In many cases, rising outflows are interpreted as a bullish signal because they reduce immediately available sell-side liquidity. Investors generally move assets off exchanges when they intend to hold rather than sell.
The latest data supports that interpretation. SHIB's exchange reserves declined by 0.03%, while total exchange netflow remained negative at approximately -23.2 billion SHIB. A negative netflow means more tokens are leaving exchanges than entering them, indicating that holders are removing supply from the market despite recent uncertainty.
The increase in outflows comes as volatility starts returning to SHIB's price action. After several weeks of relatively stable trading, the token has resumed making larger short-term moves. Active addresses increased by more than 1%, suggesting growing network participation as traders and investors react to changing market conditions.
Despite the encouraging on-chain developments, SHIB's chart remains technically weak. The token is currently trading around $0.00000413 and remains below all major moving averages. The 20-day EMA sits near $0.00000420, while the 50-day EMA is positioned around $0.00000426. More significant resistance appears at the 100-day EMA near $0.00000443 and the 200-day EMA around $0.00000447.
This means that although holders are withdrawing coins from exchanges, buyers have not yet translated that behavior into a sustained price recovery. SHIB continues to form lower highs and lower lows, maintaining its broader bearish structure.
Traders are active again
The Relative Strength Index remains near 40, indicating that selling pressure has eased compared to previous weeks but that bullish momentum is still absent. Volume has also increased alongside recent price swings, confirming that market participants are becoming more active again.
For bulls, the key takeaway is that rising outflows often precede stronger accumulation phases. However, technical confirmation is still needed. SHIB must reclaim the $0.00000430-$0.00000445 resistance zone before the market can begin discussing a larger trend reversal.
Until then, the spike in exchange outflows suggests growing conviction among holders, even as price action remains under pressure.
Dan Burgin
U.Today Editorial Team
