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A huge exchange outflow of 243.07 billion Shiba Inu tokens occurred in the past day, and this amount may pave the way for a possible price action reversal. Historically, when tokens migrate from exchanges into self-custody wallets, such large outflows signify less sell-side pressure and accumulation by long-term holders.
Shiba Inu out of pattern
After declining for weeks from its mid-year highs, SHIB is currently consolidating at around $0.00001166, according to the daily chart. The token is stuck in a symmetrical triangle pattern with support at $0.00001000 and strong resistance at $0.00001370. Bullish momentum has been contained, as SHIB has failed to break above its descending trendline resistance despite numerous attempts.
The enormous outflow, though, might offer the liquidity reset that buyers require to regain control. This perspective is reinforced by on-chain metrics. A negative exchange netflow of -238.2 billion SHIB confirmed that outflows are greatly outstripping inflows, while exchange reserves fell to 84.56 trillion SHIB, down 0.28% in a single day.
Selling pressure's source
Further supporting the drop in available sell pressure was the 1.87% decline in the value of the USD exchange reserve. It is interesting to note that transaction activity has somewhat increased, as evidenced by the higher transaction count (+0.99%) and transfer count (+1%), which both point to active token redistribution by retail and whale wallets during this phase.
When paired with the significant one-day outflow, the steep 10%-36% decline in exchange outflow (seven-day MA) may initially seem pessimistic, but it simply indicates that the majority of tokens have already left centralized venues.
Technically speaking, the RSI at 38 indicates that SHIB is about to enter an oversold situation. SHIB may create a recovery base if buyers hold the $0.00001050-$0.00001100 zone. A possible breakout above $0.00001370 would create space for the $0.00001500-$0.00001700 levels.
Even though there are still risks, particularly given the weakening overall market momentum, the massive 243.7 billion SHIB outflow is actually a bullish signal. Holders who are draining liquidity from exchanges, lowering immediate selling pressure and possibly setting the stage for SHIB's next recovery attempt are demonstrating a strong sense of conviction.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team