As Shiba Inu celebrates its sixth year, the cryptocurrency is experiencing signs of strengthened recovery in September. Despite this, it faces renewed selling pressure, evidenced by an increase in tokens being sent to exchanges. Recent data shows a surge in these transfers, with the price retreating to technically significant long-term levels.
What Do Exchange Flow Dynamics Reveal?
Recent on-chain data indicates that the average exchange inflow climbed by 1.98% over the past 24 hours, reaching approximately 1.10 billion SHIB. The top ten largest inflow transactions collectively amounted to 5.40 billion SHIB, marking an overall inflow growth of 0.98%. These movements are closely monitored since assets transferred to trading platforms could quickly be sold.
However, the situation isn’t unidirectional. The largest ten outflow transactions witnessed a 2.14% increase, with the average outflow also rising by 2.24%.
The increase in exchange inflows is notable, yet the total net flow remains negative, indicating that withdrawals still exceed deposits.
Has Shiba Inu Returned to a Critical Technical Zone?
Indeed, net flows retaining a negative status suggests there’s no overwhelmingly negative sentiment, though price weakness remains apparent. Shiba Inu has retreated from the $0.0000060 to $0.0000062 range, trading around $0.00000568. Earlier, the token briefly surpassed the 200-day moving average for the first time in months, but recent declines pulled it back to the $0.0000056 to $0.0000057 range, making this region a short-term pivot.
Buyers must reclaim $0.0000059 and then retest the $0.0000061 to $0.0000062 range for a new upward push.
What Risks Linger on the Downside?
A decisive dip below $0.0000056 could visibly weaken Shiba Inu’s outlook, drawing attention to the $0.0000051 to $0.0000052 moving average cluster as the next pivotal region. In such a scenario, SHIB might fall below its long-term resistance area, risking pressure on the $0.0000054 level. Short-term indicators also warn of momentum loss, as the latest red candles show difficulties for buyers in maintaining movement above $0.0000060. The relative strength index, which neared overbought territory during the previous surge, has now edged back into the mid-50s.
- A mere uptick in average exchange inflow around 1 billion SHIB isn’t a definitive precursor of a massive sell-off.
- The important price rejection points and the retreat to the 200-day average present an additional hurdle to any renewed uptrend attempt.
Currently, Shiba Inu’s price dynamics reflect hesitant investor sentiment, caught between potential recovery and renewed downward pressures. The cryptocurrency market continues to observe these critical zones, which may determine Shiba Inu’s immediate future direction.
