Shiba Inu's exchange reserves have fallen by approximately 1.4 trillion SHIB over the past ten days, according to on-chain data. The total amount of SHIB held on exchanges now stands at 86.48 trillion, continuing a trend observed throughout July. This reduction in readily available supply is often interpreted as a bullish signal, as it suggests investors are moving tokens to private wallets for long-term holding rather than selling.
Mixed Signals from Exchange Flows
While the decline in reserves is notable, other metrics paint a more complex picture. Exchange inflows have surged, with the seven-day average increasing by over 100%. This indicates that despite the overall reduction in reserves, SHIB is still actively moving between exchanges and private wallets. The conflicting data leaves traders with an unclear outlook, reflected in the token's price action.
Technical Analysis and Price Outlook
SHIB is currently trading near $0.00000425, stuck in a prolonged downtrend after significant losses in recent months. The asset remains below all major moving averages, including the 26-day, 50-day, 100-day, and 200-day EMAs, signaling continued bearish dominance. The 50-day EMA at $0.00000467 presents the first major resistance for bulls, while the 100-day EMA near $0.00000520 is a more critical barrier to shift the medium-term outlook.
Despite the bearish structure, SHIB has stabilized above recent lows, and the Relative Strength Index (RSI) has recovered from oversold territory, suggesting aggressive selling has eased. The removal of 1.4 trillion SHIB from exchanges may indicate that some investors are positioning for a longer-term recovery. However, until price action confirms higher highs and reclaims key moving averages, the token remains trapped in a broader bearish trend.