Shiba Inu (SHIB) currently presents a fascinating, albeit complex, market scenario according to recent analysis. While its price action remains suppressed by significant technical resistance, underlying on-chain data suggests a potential shift in investor behavior, hinting at a reduction in immediate selling pressure and persistent network activity.
Technical Hurdles and Bearish Price Action
SHIB's price continues to be firmly held down by major moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) on the daily chart. This technical resistance indicates that the token has not yet escaped its extended multi-month decline, affirming a prevailing negative trend. Despite a recent minor bounce, it has failed to overcome any significant structural resistance levels, reinforcing the notion that price momentum is lacking and current upward moves are prone to fading without substantial buying conviction.
On-Chain Data Signals Potential Accumulation
In stark contrast to the bearish price signals, on-chain data offers a more optimistic perspective. A notable net outflow of approximately 19 billion SHIB from exchanges over the past 24 hours suggests investors are moving tokens to private wallets, typically indicative of either accumulation or a preference for long-term holding rather than immediate selling. This, combined with a slight decrease in exchange reserves to around 81.62 trillion SHIB, points to reduced immediate selling pressure. Furthermore, a marginal increase in transfer activity and active addresses, up almost 1%, underscores that the network remains active and alive, even if price performance doesn't yet reflect it.
Outlook and Key Factors for a Rally
While these on-chain developments are directionally significant, they are currently minor gains rather than definitive breakthroughs. The market still shows increasing opposition against SHIB's price with very little conviction, meaning any rally would require substantial support. The biggest immediate benefit for SHIB is the apparent lessening of selling pressure, which could lead to a supply squeeze if holders continue to remove coins from exchanges. However, for a meaningful rally to materialize, actual demand must pick up significantly, marked by a surge in buying volume. This current setup is more of an indicator of potential rather than an immediate buy signal; investors should closely monitor for continued decline in exchange reserves and a sustained increase in trading volume for any bounce to become truly significant.
