Following a significant change in on-chain activity, Shiba Inu (SHIB) has experienced a modest improvement in market sentiment. Data from CryptoQuant reveals that over 100 billion SHIB tokens have reportedly left exchanges in the past day. While some market observers interpret this outflow as a bullish signal, the reality is more nuanced.
### Shiba Inu’s Exchange Flows
On-chain data highlights a net outflow of approximately 27.3 billion SHIB tokens across exchanges today, suggesting that investors are withdrawing tokens rather than depositing them. Typically, this behavior indicates that participants prefer to hold their tokens instead of selling, a pattern commonly linked to phases of accumulation.
However, in the case of SHIB, these outflows have a statistically insignificant impact on the market due to the massive supply — over 589 trillion tokens in circulation. Despite this, sentiment still plays a crucial role, and SHIB appears to be benefiting from this psychological boost.
### Price Movement and Technical Indicators
Currently, SHIB is trading at around $0.0000092 on the daily chart, bouncing off its 2024 support zone near $0.0000090 and showing a slight 2% intraday gain. Yet, technical indicators present a mixed picture.
Short-term moving averages, such as the 20-day and 50-day MAs, are beginning to flatten, suggesting that selling pressure may be easing. However, the price remains below the 200-day EMA, which is typically a strong bearish signal.
The Relative Strength Index (RSI) stands at 38, indicating SHIB is still somewhat in oversold territory, which might explain the minor rebound. Nevertheless, there is little evidence of a substantial trend reversal, as the market lacks the speculative momentum fueling previous SHIB rallies, and trading volume remains low.
### Outlook
In summary, while the recent exchange outflows provide some optimism, they are unlikely to significantly influence SHIB’s price on their own. The overall market structure remains weak, and the price is expected to fluctuate between $0.000009 and $0.000010 unless there is a major shift in demand or liquidity.
The bullish narrative around SHIB may be regaining traction, but it appears to be driven more by sentiment than by fundamental changes in the market. Investors should approach with caution and monitor key indicators for any clearer signs of a trend reversal.
https://bitcoinethereumnews.com/tech/100000000000-shiba-inu-shib-in-24-hours-rekindles-bullish-narrative/