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Recent on-chain metrics of Shiba Inu cast doubt on the sustainability of its recent price increases. The biggest change is the abrupt reversal in capital movement patterns across trading platforms, as evidenced by the sharp decline in exchange netflows of more than 70%.
Evaluation of metrics
Reduced accumulation pressure is indicated by the netflow crash, which shows a sharp decline in tokens leaving exchanges. This implies instead that more SHIB might be remaining on exchanges in anticipation of liquidation. Since higher exchange balances raise the possibility of sell pressure, this is frequently viewed as bearish.
The exchange inflow, which increased to 1.5 billion SHIB (seven-day mean) in recent data, is the second significant on-chain signal. Increased inflows usually indicate that tokens are being deposited on exchanges, which could be a sign of impending sell-offs. In addition to the netflow decline, it implies that short-term holders may be attempting to sell their positions, even though demand for SHIB has not entirely dried up.
Pricing and performance
SHIB recently tested the 200-day EMA and surged above the 50-day EMA on the price chart. It retraced to about $0.0000139 after briefly reaching $0.0000143. In keeping with the bearish on-chain backdrop, the breakout attempt was thwarted by strong resistance. The RSI supports the need for caution by displaying a moderate cooldown, following the entry into overbought territory.
SHIB is in a weird position, with increasing inflows and resistance at important moving averages. Although the price remains above its short-term support zone, which is located between $0.0000135 and $0.0000138, the on-chain dynamics indicate that significant barriers may stand in the way of further upward momentum.
The crucial support level of $0.0000127 may be retested by SHIB if sell pressure persists. A new bullish leg, however, might begin if buyers absorb the selling volume and reclaim $0.0000145. SHIB's short-term trajectory seems to be determined by the flow of tokens into and out of exchanges, so investors should immediately concentrate on exchange activity.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team