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▲ Shiba Inu (SHIB) Coin
Shiba Inu (SHIB) has begun to show signs of investor accumulation after a prolonged period of weak price movement. Analysis suggests that an increase in SHIB volume withdrawn from centralized exchanges indicates a trend closer to long-term holding than short-term selling.
On May 10 (local time), U.Today reported that recent exchange flow data is shifting towards indicating accumulation by Shiba Inu investors. The most significant change was an increase in exchange withdrawals. SHIB's net exchange inflow is currently close to approximately minus 134 billion SHIB, and the total volume of exchange withdrawals has surpassed 442 billion SHIB. This means more SHIB is leaving exchanges than entering them.
An increase in exchange withdrawals is commonly interpreted as an accumulation signal in the market. When investors withdraw assets from centralized platforms, it can be taken to mean a stronger intent to hold rather than to sell immediately. Shiba Inu's chart structure also partly supports this stabilizing trend. After a decline at the beginning of the year, the price gradually formed an upward channel and showed signs of attempting to break short-term resistance.
Shiba Inu has reclaimed the 50-day Exponential Moving Average (EMA) and is gradually approaching the 100-day EMA above it. However, remaining below the 200-day EMA still acts as a long-term bearish barrier. As a meme coin, it is a highly sensitive asset to market sentiment, so a potential variable is that the rebound could quickly reverse if the overall momentum in cryptocurrencies weakens.
While exchange indicators superficially show strong accumulation signals, internal flows are somewhat mixed. The 7-day average exchange withdrawal activity decreased by over 73%, and exchange holdings decreased by approximately 0.16%. U.Today analyzed that the recent surge in withdrawals might be due to some large transactions rather than a widespread movement by individual investors. Nevertheless, the current overall trend is evaluated as closer to accumulation than distribution.
Shiba Inu's future movements are summarized into two scenarios. The first is a sustained upward breakout. If Bitcoin and the overall cryptocurrency market continue their strong trend, Shiba Inu could surpass its current channel top and create another speculative rally based on meme coin sector rotation and retail investor momentum. The second scenario is a long-term sideways movement. Until a significant trend reversal fully emerges, Shiba Inu may slowly build a support base, and large holders may continue to accumulate positions. U.Today reported that Shiba Inu currently appears much more stable than during its previous sharp decline phase.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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