Shiba Inu is showing one measurable sign of relief. Exchange inflows have declined noticeably, reducing the immediate sell-side pressure that had weighed on the token during previous sessions. On-chain data confirms the shift. Fewer SHIB tokens are moving toward exchanges. That pattern historically precedes stabilization phases, as reduced inflow volume typically reflects lower intent to sell.
However, reduced selling pressure is not the same as renewed buying interest. The distinction matters. SHIB remains technically weak, and the broader trend has not reversed. One positive metric does not rewrite a bearish structure.
Price Action Tells a Different Story
Despite improved inflows from exchanges, SHIB continues to struggle with overhead resistance. The token is trading beneath key moving averages, and repeated rejection near those levels signals that sellers are still active at higher price points.
At the time of writing, Shiba Inu trades at around $0.00000603, down 4.74% in the last 24 hours. The memecoin has dropped 2.6% in the last 7 days. Shiba Inu is down 21.2% over the last 30 days.
Recent bounce attempts have not held. Each upward push has faded quickly, pointing to weak follow-through from buyers. Volume during these moves has been moderate at best. That is not the profile of a market building toward a genuine reversal. It is the profile of a market testing resistance and failing.
The pattern of lower highs remains intact. This is a critical technical detail. As long as SHIB continues printing lower highs, the broader structure favors sellers. Short-term positioning may explain the brief upside moves, but structural demand has not returned to the market in any meaningful way.
Price may also be reacting to broader market sentiment rather than SHIB-specific fundamentals. In that environment, temporary relief from reduced inflows can be quickly offset by macro-driven selling. Investors should weigh that context carefully before interpreting any short-term price movement as confirmation of a trend change.
What a Real Reversal Would Require
For SHIB to shift from its current fragile state into a confirmed recovery phase, several conditions must be met simultaneously. A single improving metric is insufficient.
Active buying pressure must materialize. Right now, it has not. Buyers are not committing at higher price levels, and that reluctance reflects continued caution in the market. Without consistent demand entering the market, any upward move is likely to remain shallow and short-lived.
Volume must increase in a meaningful way. Recovery moves backed by weak volume tend to fail. Strong, sustained buying pressure is typically reflected in above-average volume across multiple sessions. SHIB has not demonstrated that pattern recently.
Source: https://coinpaper.com/14963/shiba-inu-price-prediction-on-chain-data-shows-relief-but-reversal-is-unconfirmed
