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Shiba Inu, the second-largest meme coin by market cap, has seen a bullish exchange activity aligning with its price action in the past 24 hours.
Shiba Inu ($SHIB) has rebounded 5% on the day, joining a broader market trend. While the broader recovery has played a key role, exchange activities appear to be another major contributing factor to the market recovery attempt.
Key Points
- In the past 24 hours, CryptoQuant noted that a net total of 97,177,600,000 $SHIB tokens flowed out of exchanges.
- Negative netflows suggest that the $SHIB exchange reserve is depleting, with holders preferring self-custody.
- The CryptoQuant metric overview also shows that active addresses and active sending addresses in the Shiba Inu ecosystem are increasing.
- From a technical perspective, Shiba Inu appears to be finally breaking out of a descending trendline on the 1-day chart.
Shiba Inu Bulls on Top
Data from CryptoQuant shows that the Shiba Inu exchange netflow has finally turned negative. In the real sense, “negative” here is bullish for the meme coin, as it indicates outflows are now larger than inflows.
In the past 24 hours, the market intelligence platform reported that a net total of 97,177,600,000 $SHIB tokens flowed out of exchanges after subtracting outflows from inflows.
Notably, negative netflows suggest that the $SHIB exchange reserve is depleting, with holders preferring self-custody. This does not just reduce selling pressure but signals accumulation over distribution. Moving tokens out of trading platforms suggests an intention to keep the stash longer, reinforcing confidence in the asset’s mid- and long-term prospects.
Interestingly, this comes at a time when $SHIB is struggling to find its bullish footing. While it has recovered in the past 24 hours, it has corrected substantially in higher timeframes. For context, the meme coin is down 59% from its September high of $0.0000148 and has recorded seven consecutive monthly drawdowns since last August.
As such, this accumulation suggests that holders believe the bearish momentum could finally be nearing its end. This dip-buying near key local support levels signals that selling pressure is fading, and, if this persists, it could provide the much-needed catalyst for a sustained recovery.
Shiba Inu Active Address Rises
The CryptoQuant metric overview also shows that active addresses in the Shiba Inu ecosystem are increasing. In the past 24 hours, this indicator has increased by 1.08% to 150.375, showing that the total number of unique addresses, including senders and receivers, has grown.
The active sending addresses reflected this increased user adoption, growing 1.17% to 92.875 unique users. This hinted that a chunk of the active addresses were those moving their stash.
Moreover, Shiba Inu network adoption remains high. A recent report shows steady growth in the number of holders, with 5,000 to 12,000 new addresses added each month. The adoption has pushed the number of holders past 1.55 million.
A combination of user activity and accumulation paints a bullish scenario for $SHIB. What matters most now is whether this trend will persist. If it does, it suggests that bulls are beginning to take control of the market—a scenario that precedes an impulsive price uptick.
$SHIB Technical Analysis
From a technical perspective, Shiba Inu appears to be finally breaking out of a descending trendline on the 1-day chart, spurred by its nearly 6% increase since the start of today. Notably, this neckline resistance has suppressed the token’s price since a lower high formation on February 14.
The line capped this uptrend and has done the same for others, as seen on March 16 and 25 when it reached intraday highs of $0.00000644 and $0.00000628. A daily close above this trendline, accompanied by strong volume, would spark further uptrends.
Meanwhile, the next target is the $0.00000846 level, which aligns with the 200-day MA. From the current market price of $0.00000612, this represents a 37.8% increase.
beincrypto.com