The tide seems to be turning for Shiba Inu ($SHIB) on exchanges after a big wave of token withdrawals. Shiba Inu's on-chain data suggests that netflows are finally positive which essentially ends the biggest outflow trend that was fueled by the most recent Binance hack and closed withdrawals.
According to the latest exchange data, around 429 billion $SHIB flowed into exchanges, with 276 billion being removed which corresponds to a positive netflow of roughly 153 billion tokens, eliminating the withdrawal trend present before.
Withdrawals are still heavy, though, with the outflow spike of around 220 billion tokens in the last 7 days.
$SHIB Exchange Reserves Are Growing
Exchange reserves currently show 85 trillion, which is a normal reading for the token in the last few years. All available $SHIB on exchanges at the current price is worth approximately $400 million.
Usually, outflows from exchanges are seen as a sign of accumulation among investors, since they move their tokens into wallets instead of keeping them on exchanges to sell at the best moment possible.
Rising inflows, on the other hand, are considered a negative signal, which could pinpoint an upcoming selling activity, despite the fact that deposits aren't necessarily turning into selling pressure right away.
Shiba Inu Price Faces Technical Pressure
$SHIB looks bearish from a technical perspective, with the daily timeframe showing the token trading near $0.00000465, below its major moving averages. $SHIB has also broken below an ascending support trendline.
The $0.0000050–$0.0000052 zone is now the key resistance, and the longer-term moving average near $0.0000055 should be considering the main target for flipping the mid to long-term trend.
The Relative Strength Index (RSI) stays in the lower part of its range. Momentum is weak, but a reversal isn't confirmed until volume turn to adequate levels.
Can $SHIB Recover?
The withdrawal wave has clearly calmed down, but not by the extent needed for a proper market reversal at this point in time.
The 153 billion $SHIB netflow we are witnessing now could add even more selling pressure, so it's important to stay cautious if you're a large meme coin holder.
Unfortunately, to gain control back, buyers would need substantial volume injection and a push above $0.000005, until then, $SHIB balances will keep growing substantially on exchanges and causing a pressure spike at some point in time in the future.
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