The Shiba Inu token is currently trading around $0.00000541, after witnessing a significant retreat at the start of October from its late September peak near $0.00000626. Recent data suggest a deceleration in the selling velocity. Exchange flows indicate that while not all investors are exiting, a portion continues to withdraw their tokens from trading platforms.
Shift in Exchange Flows Shows Net Exits
In the past 24 hours, incoming Shiba Inu (SHIB) to exchanges totaled approximately 133.8 billion, while outflows reached 161.1 billion SHIB, resulting in a negative net flow of 27.3 billion SHIB. This data highlights that more tokens are being moved to personal wallets than are being sent to exchanges for sale in the short term.
Shiba Inu, a meme coin on the Ethereum network, often experiences fluctuating exchange flow data, indicating the quantity of a token entering and leaving trading platforms. An increase in withdrawals typically points to a growing inclination among holders to retain their assets.
Though the volume of SHIB leaving exchanges exceeds inflows, it does not completely nullify selling interest. It does, however, provide limited grounds for short-term recovery.
On the other hand, on-chain indicators offer an inconclusive outlook. The seven-day average of inflows increased by approximately 13% in the last day, suggesting that some investors are still in a selling mindset. Hence, while the net outflow data is positive, market caution remains firm.
Critical Price Thresholds Loom for SHIB
Currently, SHIB remains below the long-term average level situated at $0.00000560. Several rejections in the $0.00000550 to $0.00000560 range have made it a key short-term threshold. The price has held the $0.00000530 area, with the $0.00000510 level, observed on October 6, acting as the next crucial support zone.
A sustained close below $0.00000510 could dampen recovery expectations, potentially reintroducing the $0.00000470 to $0.00000450 range, which marked the lows during the summer.
A strong close above $0.00000560, backed by significant volume, could enable buyers to regain control, with $0.00000580 and subsequently $0.00000600 becoming target levels.
Exchange Reserves Continue Downward Trend
The reserves of SHIB held on exchanges have been declining for about a week, with the dollar value of these reserves dropping approximately 1.5% in the past 24 hours to $471.5 million. This decrease in available supply on exchanges lowers the immediate saleable token amount, potentially supporting the price over time.
However, the short-term outlook remains precarious as the price stays under critical thresholds. While ongoing net outflows may bolster the buying side, any persistent increase in inflows could reignite downward pressure.
