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Although there is still significant long-term bearish pressure on Shiba Inu, a number of on-chain and market-flow metrics indicate that the meme asset may be nearing a stabilization phase following weeks of consistent weakness, according to data from CoinGlass.
Price of Shiba Inu breaches the key level
SHIB is still stuck below every significant moving average on the daily chart as of this writing. The price recently breached the lower boundary of a short-term ascending structure, indicating that sellers continue to control broader momentum. In theory, the asset maintains the downtrend by continuing to print lower highs and lower lows.
Beneath the surface, however, the flow data is starting to change. The spot market activity of SHIB is one of the most noteworthy developments. On shorter time periods, spot net flow increased by over 283 percent, indicating a significant rise in actual buying and selling activity, as opposed to just leveraged speculation. Because spot activity in cryptocurrency markets represents actual token distribution or accumulation, it typically has greater weight than derivatives.
Exchange outflows aren't dynamic
In a number of metrics, exchange outflows are still greater than inflows. According to current data, exchange outflows exceeded 580 billion SHIB, while inflows were about 461 billion. Because coins leaving exchanges are frequently linked to accumulation or decreased immediate sell pressure, this imbalance is significant.
Additionally, exchange reserves are getting closer to the 80 trillion SHIB region. In general, declining reserves mean that there are fewer tokens on trading platforms that can be quickly liquidated.
The positioning of derivatives presents a more nuanced picture. Speculative traders continue to exercise caution because futures flow data continues to show sporadic negative net inflows. Additionally, liquidation data is still quite low, indicating that the market has not yet experienced either a panic phase or a euphoric rebound environment.
This is also significantly influenced by the larger crypto market environment. While altcoins are still having trouble establishing independent trends, Bitcoin has recently cooled after experiencing strong upside momentum earlier in the quarter. Instead of raising bids across the board, traders are actively rotating capital, and liquidity is still selective.
However, the combination of diminishing exchange reserves, increased outflow dominance, and rising spot activity indicates that bears may be progressively losing ground. The recovery of SHIB has not yet been confirmed. However, the current flow structure indicates that Shiba Inu might be closer to forming a local bottom than many traders currently anticipate if general market conditions stabilize and Bitcoin avoids another significant correction.
Dan Burgin
