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After months of continuous downward pressure, Shiba Inu is exhibiting early indications of structural stabilization. On the price chart, SHIB has moved into a tight consolidation range, slightly above recent local support, rather than printing aggressive lower lows. In the absence of confirmation from volume and wider market participation, this type of compression usually indicates seller exhaustion rather than bullish continuation.
Shiba Inu's exchange flows are skewed
Right now, the on-chain activity is more noticeable. CryptoQuant-style metrics show that SHIB had a significant negative net flow, effectively removing about 86 billion tokens from centralized exchanges in a 24-hour period.
The fact that net flow is significantly negative (-108 billion range) suggests that more tokens are being taken out than put in. Since assets are being transferred into private wallets, rather than set up for liquidation on exchanges, this typically indicates less immediate selling pressure.
Exchange reservers are spiking
This narrative has been reinforced by a slight decline in exchange reserves. Lower reserves reduce the amount of supply available on trading venues, which can magnify price movements in the event that demand increases. However, timing is crucial, and the market currently lacks strong directional conviction, so this alone cannot ensure upside.
Upon closer inspection, both exchange inflow and outflow metrics are high, but outflows predominate. Instead of passive holding behavior, this suggests active repositioning. Active address data has increased somewhat in the meantime, but not to the point where it would suggest a significant influx of new participants.
This configuration produces a conditionally bullish situation from a forward-looking standpoint. A sharper-than-expected breakout could occur if SHIB is able to combine declining exchange reserves with a spike in demand, particularly from retail flows returning to memecoins.
It is untrue to say that centralized exchanges are falling. Actually, cyclical capital rotation and transient withdrawal behavior are taking place.
The most interesting question for SHIB is straightforward: will demand follow the squeeze on supply? If so, the current consolidation may resolve upward. If not, this is a one more halt in a more general sideways market.
Dan Burgin
U.Today Editorial Team
