An analysis from U.Today indicates that the Shiba Inu SHIB coin is in an uncomfortable yet interesting position, as prices are clearly not rising but they are also not dropping sharply anymore. The key moving averages, especially the 50 and 100-day exponential moving averages, continue to act as dynamic resistance while maintaining a downward trend, while the 200-day moving average remains significantly higher.
However, the downward momentum has stalled, as we currently witness compression with the formation of a shallow bullish structure at the bottom resembling a descending range and a mixed short-term descending wedge. Momentum indicators reflect this frequency, as the Relative Strength Index (RSI) hovers in the mid-forties, indicating a lack of real strength or panic.
Outflows from exchanges indicate potential accumulation rather than readiness for sale:
According to the site, flows on the chain are the critical part of the current picture, with a net external flow from exchanges in one day amounting to approximately 192.6 billion SHIB coins, a number that is not insignificant; this represents a significant withdrawal of liquidity from exchanges, and typically indicates transfers to cold storage or accumulation by major entities, not readiness for immediate sale.
In the past, sustainable upward waves on the Shiba Inu coin (SHIB) only occurred after several days of net negative flow from exchanges, and what matters is the context; this external flow happened while the price was still low, indicating that buyers might be quietly absorbing the supply instead of chasing the bullish candles.
The Shiba Inu coin (SHIB) is caught between a short-term rebound wave and a downward breach:
According to the site, the likelihood of a short-term rebound or squeeze increases if this behavior continues over the weekend, especially if general market conditions do not worsen. Any real upward movement requires reclaiming the price and maintaining the 50-day exponential moving average as support first, and without that, any subsequent rise will remain merely a counter-trend move.
On the other hand, the main point of invalidation for optimistic reading is the clear downward breach of the current unification base, which will negate the bullish effects of external flow.
Trading volumes of the Shiba Inu coin (SHIB):
The site clarified that the Shiba Inu coin (SHIB) is not bullish yet, but it is no longer starkly weak either; instead of capitulating, the external flow from exchanges indicates a smart positioning of funds, and the possibility of a relief wave remains if trading volume increases and is accompanied by an upward price movement. If this does not happen, further sideways movement should be expected before the market makes a decisive decision.
Traders should monitor any decisive breach above moving averages or below the current support base, in addition to the continued pattern of negative flows from exchanges.