Shiba Inu Sees Huge Exchange Inflow, But Data Suggests No Panic Selling

Shiba Inu (SHIB) has seen a significant increase in exchange inflows over the past 24 hours, with 251 billion SHIB transferred to centralized trading platforms. However, this may not necessarily be an indication of investors abandoning the asset. The on-chain data suggests that exchange inflows and outflows are still roughly balanced, with net inflow of about 3.45 billion SHIB.

The fact that exchange reserves have remained largely unchanged, around 87.26 trillion SHIB, also supports this view. This indicates that exchanges are not building up significantly larger balances despite the increased transfer activity. Furthermore, network activity has improved, with active sending addresses increasing by 0.79% and active receiving addresses by 0.83% over the previous day.

The recent breakout of SHIB above a prolonged downtrend was supported by a spike in trading volume, but the rally soon lost steam after encountering resistance close to the 200-day moving average. The Relative Strength Index has cooled down to around 58, suggesting that the market is currently in a consolidation phase.