100,000,000,000 Shiba Inu (SHIB) in 24 Hours Rekindles Bullish Narrative

Following a significant change in on-chain activity, Shiba Inu has seen some improvement in market sentiment. According to data from CryptoQuant, over 100 billion $SHIB tokens have reportedly left exchanges in the past day. Although some market observers have interpreted this outflow wave as a bullish signal, the truth is a little more complex.

Shiba Inu's exchange flows

A netflow of +27.3 billion $SHIB across exchanges today is highlighted by the on-chain data, indicating that investors are withdrawing tokens rather than depositing them. This usually indicates that participants are opting to hold instead of sell, a behavior linked to phases of accumulation. However, in the case of $SHIB, these outflows are statistically insignificant in terms of direct market impact due to the sheer volume of tokens in circulation — more than 589 trillion.

However, sentiment counts, and $SHIB seems to be gaining from this psychological boost. The asset is trading at $0.0000092 on the daily chart, bouncing off its 2024 support zone around $0.0000090 and displaying a slight 2% intraday gain. However, technical indicators are still inconsistent. While short-term moving averages (20-day and 50-day) are beginning to flatten, indicating that selling pressure may be lessening, the price is still trading below the 200-day EMA, a strong bearish signal.

The slight rebound may be explained by the RSI at 38, which suggests that $SHIB is still in somewhat oversold territory. There is not much proof of a general trend reversal, though. The market lacks the speculative momentum that drove previous $SHIB rallies, and volume is still low.

To put it briefly, even though the exchange outflows offer some hope, they are not likely to make a significant difference on their own. The market structure is still weak, and $SHIB’s price is predicted to stay between $0.000009 and $0.000010 in the absence of a major change in demand or liquidity. It is possible that the bullish narrative has been revived, but it is based more on fumes than fundamentals.