-24 Billion Shiba Inu (SHIB) in 24 Hours: Are Bears Stepping Back?

After months of continuous selling pressure, Shiba Inu is stabilizing, and recent on-chain activity indicates that the market’s aggressive bearish momentum may be beginning to wane.

Exchange flow data shows that about 24 billion SHIB have left exchanges in the past day, which is a noteworthy development and raises concerns about whether sellers are retreating. Exchange flows are frequently a valuable source of information about investor behavior. 

Shiba Inu’s potential selling activity

Large token movements on exchanges usually indicate possible selling activity, as traders get ready to reposition or liquidate assets. On the other hand, withdrawals from exchanges typically signify long-term holding or accumulation, since investors transfer tokens into private wallets instead of keeping them ready for quick sale.

According to the most recent data, there was a net outflow of about 24 billion SHIB, indicating that some market players may no longer be getting ready to sell aggressively. A single day of outflow decreases the immediate supply available for selling pressure on exchanges, but it does not ensure a complete trend reversal.

Technically speaking, SHIB has been in a protracted downtrend, with steady lower highs and lower lows. The asset has consistently failed to recover important moving averages over the last few months, such as the 50-day and 100-day exponential moving averages, which are still above the current price and serve as dynamic resistance.

Recovery possible

The latest price movement, however, indicates a slight recovery from local lows. After its most recent sell-off, SHIB has created a short-term ascending structure, moving marginally higher toward adjacent resistance levels. Although this recovery is still modest, it shows that buyers are at least making an effort to keep the market stable.

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Exchange outflows and a slight technical recovery are especially intriguing because they point to a possible change in the dynamics of the market. The likelihood of persistent strong downside pressure may start to decrease if there are fewer tokens available for sale on exchanges. However, until important resistance levels are recovered, the overall trend remains negative.

The fact that SHIB is still below a number of significant moving averages that are still sloping lower suggests that the market has not yet completely entered bullish territory. 

The current state of affairs is not a confirmed reversal but rather an early signal for investors. Although the market still needs more price confirmation before a long-term recovery is likely, the 24 billion SHIB outflow may be seen as an indication that bears are losing steam.