Shiba Inu, the popular meme coin developed on the Ethereum network, has shown signs of stabilization following recent weeks marked by significant price swings. The net inflow of tokens on exchanges, an indicator of the difference between the amount of tokens entering and leaving exchanges, has dropped to about 120 billion SHIB. This reduction suggests a more limited supply ready for sale in the short term compared to previous periods.
Slowdown in Exchange Movements Highlights Market Calm
Net inflow, which measures the difference between tokens deposited into and withdrawn from exchanges, impacts the market by indicating shifting pressures. High positive net flow values can suggest an increasing supply moving to exchanges, potentially signaling selling pressure. Conversely, the current reduction in net flow indicates a decrease in such pressures. Standing as a significant bellwether, Shiba Inu is acknowledged for its vast investor base as a meme coin rooted in the Ethereum ecosystem.
Data reveal that total inflows are at 551.8 billion SHIB while withdrawals amount to 453.4 billion SHIB. Nonetheless, exchange reserves posted a 0.11% rise, with their value in dollar terms climbing by 4.85%. Consequently, drawing conclusions that the market is entering a significant accumulation phase might be premature.
The decline in net inflow to exchanges suggests a weakening of short-term selling pressure, although this should not alone be considered as a confirmation of a renewed rally.
Exit Averages Surge, Prompting Market Curiosity
A notable uptick was observed in the seven-day average of exchange withdrawals, surpassing a 630% increase. Such substantial withdrawals may be interpreted as constructive if tokens are moved into private wallets. However, given the volatile nature of this indicator, relying on it exclusively may not be prudent.
Currently, SHIB is trading at around $0.00000598, recovering from its September low of approximately $0.0000049. The token has also risen above its long-term moving average of around $0.00000565. The maintenance of this level amidst recent pullbacks remains a critical technical factor to monitor.
Narrowing Price Range Observed in Short-Term Trade
On the upside, the range between $0.00000610 and $0.00000630 is now in focus. September’s attempted rallies lost momentum in this range, suggesting a substantial supply zone just above the current price. Achieving a daily close above $0.00000630 could potentially strengthen the formation of a higher peak.
In terms of momentum, a more balanced picture is emerging. The Relative Strength Index (RSI) remains above the 50 mark without entering overbought territory, providing some leeway for another upward attempt.
The primary risk involves the price falling below $0.00000560, which could see it descend beneath long-term support once more.
In such a scenario, attention would shift to levels like $0.00000540, and subsequently $0.00000500. The current situation, with declining net inflows, alleviates short-term pressure somewhat. However, to rekindle a robust rally, the market would need to confirm this trend with a stronger price breakout.
