SHIB trades below major averages as bearish momentum gradually begins fading away. Stable exchange reserves and negative netflows suggest holders avoid panic selling consistently. Oversold RS
Shiba Inu is showing growing signs that bearish momentum is weakening despite its prolonged downtrend. According to a recent market analysis, declining trading volume and stable on-chain activity indicate sellers may be running out of strength as SHIB trades near a key support zone.
SHIB remains below its 50-day, 100-day, and 200-day exponential moving averages. Those indicators continue to reflect the broader bearish trend. However, recent price action suggests the pace of selling is beginning to slow.
The token recently attempted a breakout from a short-lived ascending pattern. However, buyers failed to sustain momentum, pushing SHIB back toward the $0.0000042 level. Even so, market activity does not resemble the heavy liquidation often seen during major selloffs.
Instead, trading participation has gradually weakened. Consequently, the latest decline appears driven by fading activity rather than aggressive selling pressure.
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Trading volume has steadily decreased throughout SHIB’s latest correction. That trend suggests fewer market participants are willing to sell at current prices. Additionally, exchange reserves have remained relatively stable near 80 trillion SHIB despite continued market weakness. Meanwhile, exchange netflows remain negative as more tokens leave exchanges than enter them.
Source: Tradingview
That pattern indicates many holders prefer keeping their assets instead of preparing them for immediate liquidation. Moreover, active wallet addresses and transaction counts have remained relatively stable throughout the recent decline. Those on-chain metrics do not reflect widespread panic selling. Instead, they suggest long-term holders continue showing patience despite the prolonged correction.
The Relative Strength Index has moved into deeply oversold territory. Similar readings have previously coincided with local price bottoms. Although oversold conditions do not guarantee a recovery, they often indicate that downside momentum is becoming increasingly limited. Besides that, weakening volume suggests bears may be losing influence over short-term price action.
Without renewed selling interest, further declines could become more difficult to sustain. However, buyers still need stronger momentum before any sustained recovery can develop. Shiba Inu remains in a broader downtrend, but several market indicators suggest bearish momentum is weakening. Declining volume, stable exchange reserves, negative netflows, and oversold technical readings all point to growing signs of seller exhaustion, although a confirmed bullish reversal has yet to emerge.
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The post Shiba Inu Bearish Pressure Weakens as On-Chain Data Points to Seller Exhaustion appeared first on 36Crypto.
