Shiba Inu's Rebound Hits Snag as Key Metric Declines by 48%
Shiba Inu's recent rebound is facing challenges as its key exchange metric has declined significantly. The token's seven-day moving average of mean exchange outflows has dropped by approximately 42% to 48%, indicating a weakening of one of the signals that supported the bullish reversal.
The decline in exchange outflows suggests that holders are transferring SHIB into private wallets instead of keeping it on the market. This does not necessarily mean investors are selling, but rather that the source of potential supply reduction has lost momentum.
The data is still conflicting, with the mean inflow increasing by 0.79% and overall exchange inflow rising by 0.56%. However, the total outflows increased by 0.59%, and the total exchange netflow remains extremely negative at around -62.5 billion SHIB.
The price of SHIB is facing a significant obstacle, with the token currently trading around $0.00000535 after a brief surge above $0.0000060. The long-term moving average is located at $0.00000573, which has already been tested by SHIB but failed to establish itself above.