Shiba Inu Flashes Major Sell Pressure Reversal

Shiba Inu's exchange netflow has turned negative for the first time in seven days, according to data reported by U Today, offering a potential signal that immediate selling pressure on the meme token may be easing.

42.4 Billion $SHIB Exits Exchanges

The most recent exchange flow data shows that SHIB's total exchange netflow fell to approximately -42.4 billion tokens. The directional shift is significant because it disrupts a week-long period characterised by positive inflows and elevated exchange reserves, even though the scale itself is not particularly extreme when compared to prior cycle peaks.

Sustained positive inflows into cryptocurrency exchanges typically signal that traders are moving assets onto platforms to trade or sell. Negative netflows typically indicate the opposite: investors are moving tokens into longer-term storage or private wallets, which lowers the amount of liquidity available for short-term sales.

Technical Picture Improves, But Caution Remains

The combination of declining exchange netflows and improving technical structure makes the environment better than it has been for weeks for SHIB, with the aggressive exchange inflow pressure that once affected price action no longer evident in the market.

The price has been rising steadily toward the 100-day EMA, which has capped bullish momentum for months, and has recently broken above short-term resistance, with SHIB currently trading close to the $0.0000064 area with higher lows continuously forming since March.

Since SHIB is still trading below the 200-day EMA, the longer-term trend has not yet completely reversed. The 50-day and 100-day exponential moving averages remain above the current price, leaving open the possibility of a short-term bounce but requiring further confirmation for a medium- to long-term uptrend.

In the upcoming sessions, traders might start to see the current recovery as something more significant than a brief relief bounce if SHIB is able to break and hold above the 100-day EMA.

Sources:
U Today: Shiba Inu (SHIB) Exchange Flows Are Negative for First Time in 7 Days
Bloomingbit: Shiba Inu Exchange Inflows Fall 47%, Easing Selling Pressure