SHIB Netflows Turn Positive Amid Technical Breakdown
In brief
- 50 billion SHIB exited exchanges in 24 hours, creating negative netflow of -50.8 billion tokens.
- Active addresses and exchange reserves declining, indicating investors moving tokens to private wallets.
- SHIB trades below key resistance despite short-term rebound; technical indicators remain bearish.
On-Chain Accumulation Signals
The netflow was around negative 50.8 billion SHIB, meaning significantly more tokens were withdrawn from exchanges than deposited. In crypto markets, persistent negative netflows are generally considered bullish because they indicate investors are moving assets into private wallets rather than preparing them for sale.
Supporting this narrative, active addresses increased by about 1% over the same period, while both active sending and receiving addresses also posted gains. Exchange reserves of SHIB continued to trend lower during the latest reporting period. Lower exchange reserves reduce the immediately available supply that can be sold on the market.
The Divergence
The price action tells a different story. SHIB recently broke down from a rising wedge structure that had been developing for months. The breakdown triggered heavy selling pressure and pushed the asset well below its major moving averages. While a short-term rebound emerged after the selloff, SHIB still trades beneath key resistance levels.
Skeptics argue that netflows alone cannot confirm accumulation intent. Outflows could reflect panic exits to self-custody rather than strategic buying. Technical indicators remain bearish, and the breakdown remains the primary risk signal. On-chain metrics cannot override chart weakness.
What's Next
Shiba Inu is still struggling on the price chart, but on-chain data suggests that investors may be quietly accumulating the asset. Whether this activity translates to a price recovery depends on whether buyers can push the token back above its major moving averages. Until then, the divergence between constructive on-chain signals and bearish technicals leaves the outlook uncertain.
