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Shiba Inu is starting to find some stability, but recent on-chain data still shows traders aggressively reshuffling positions across centralized exchanges. As investors continue to move money around the market, SHIB saw a significant increase in exchange-related activity, with outflow metrics rising dramatically over the previous 24 hours.
Shiba Inu is back to ascension
The market is attempting to recover from a bearish cycle, as seen on the chart itself. SHIB has been trending lower for the majority of the last year, continuously trading below long-term moving averages and significant resistance levels.
However, in an effort to reclaim the 50 EMA, the asset recently began to form a gradual ascending structure, making higher lows, without breaking the 100 EMA just yet.
Exchange activity is currently the bigger story. The most recent metrics show that exchange reserve levels continued to rise, while SHIB exchange outflows and inflows both increased.
Over the past day, the Exchange Reserve increased by about 0.17%, indicating that more SHIB are still parked on centralized trading platforms. That typically indicates increased market activity and possibly higher volatility in the future.
While the Exchange Inflow Mean decreased by about 15% over a seven-day period, the Exchange Outflow Mean decreased by more than 62%. This combination raises the possibility that large holders are reducing their aggressive transfer activity following periods of high movement. In the meantime, overall exchange inflows continue to exceed outflows.
There were about 427.9 billion SHIB coming into exchanges and 285.7 billion going out. Because exchange inflows are frequently linked to possible selling pressure, particularly in volatile market conditions, this imbalance is significant.
Price action stays below 200 EMA
Additionally, price action is still stuck below the 200 EMA, which is still a significant long-term resistance barrier. Traders will probably be hesitant to declare a complete trend reversal until SHIB firmly breaks above that level. Increased volatility around current levels should now be anticipated by investors.
Although the exchange metrics indicate that market participants are still very active and continuously repositioning, the chart's improving structure indicates that SHIB is no longer in freefall.
SHIB may keep pushing higher and try to break out of its current channel formation if the overall cryptocurrency momentum is still strong. However, growing exchange reserves and high inflows could quickly result in fresh selling pressure if market sentiment deteriorates.
Dan Burgin
U.Today Editorial Team
