Shiba Inu (SHIB), On-chain Shows 'Green Signal'...But 191.89% Surge in Outflows is a 'Stumbling Block'

▲ Shiba Inu (SHIB)

Exchange outflows of Shiba Inu (SHIB) surged by 191.89%, signaling a positive outlook. However, inflow indicators also skyrocketed by 354.32%, leaving the direction still unclear.

According to U.Today, a cryptocurrency specialized media outlet, on September 14 (local time), Shiba Inu's 7-day average exchange outflow increased by 191.89%. This is considered a positive sign, as an increase in the amount of tokens moving from exchanges to personal wallets can reduce the immediately tradable supply. The increase in exchange holdings was only 0.5%, indicating that recent movements have not led to large-scale exchange accumulation.

Network activity also slightly improved. Active addresses and active receiving addresses increased by 0.89% each. While not indicative of significant network growth, it suggests that on-chain activity is stable and not decreasing.

Conversely, other indicators point to potential selling pressure. The average exchange inflow volume increased by 1.9%, and total exchange inflows increased by 1.71%. Notably, the 7-day moving average of average exchange inflows surged by 354.32%. This implies that a large amount of Shiba Inu moving to exchanges simultaneously could increase the supply available for sale.

The first scenario is a continuation of increased exchange outflows and the maintenance of the current support structure. If selling pressure is controlled, buying pressure could push the price up to the next resistance level. However, the media noted that a significant increase in trading volume and a clear breakout above the recent consolidation range are necessary to confirm a strong recovery.

The second scenario is where increased exchange inflows actually lead to selling. If demand weakens and exchange holdings increase, there is a higher probability of retesting support levels. U.Today assessed that while the 191.89% increase in outflows is positive, the 354.32% increase in inflow indicators means that a bullish trend cannot be confirmed solely based on current signals.

[Key Article Summary]

-Shiba Inu's 7-day average exchange outflow increased by 191.89%, indicating a positive on-chain signal.

-The 7-day moving average of average exchange inflows also surged by 354.32%, simultaneously confirming the possibility of increased selling pressure.

-If outflows continue to increase and support levels are maintained, a rebound is possible, but if inflows lead to actual selling, there is a higher chance of retesting support levels.

*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.*