The widely discussed 426 billion shib netflow is misleading; it represents token movement, likely for liquidity or reorganization, not necessarily buying pressure. exchange reserves are rising, indicating no supply tightening, which undermines any bullish interpretation.
The analysis provides a critical, in-depth look at the headline figure, contextualizing it with rising exchange reserves and technical indicators (moving averages, rsi) to offer a well-reasoned, cautious perspective.
Shib remains trapped in a downtrend, trading below major moving averages. rallies are being sold into, and volume spikes are erratic. technicals show no long-term trend shift, and increasing exchange reserves suggest ample liquidity for potential selling.
Current technical indicators like the rsi and price action below moving averages suggest that the bearish pressure and inability to recover broken levels will persist in the near term, with no immediate signs of a long-term trend reversal.
Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Shiba Inu's market damage Sell-side volume Advertisement The Shiba Inu market is not behaving like it is going to blow up. It is behaving as if it has been depleted, compressed and left to determine whether it is capable of rising again. That reality is reflected in price action: SHIB is still trapped in a wider downtrend, trading below its major moving averages with rallies being sold into rather than sustained. Shiba Inu's market damage Damage control is a more accurate term for the current state of affairs on the Shiba Inu network. The 426 billion SHIB netflow is the headline figure that has people talking. That seems like a huge amount on paper. In actuality, context is necessary. The difference between tokens entering and leaving exchanges is all that netflow measures. A high number does not always indicate buy pressure or bullish accumulation. It simply denotes motion. SHIB/USDT Chart by TradingView Exchange reserves continue to rise at this time. It is more important than the netflow figure. Token positioning for liquidity rather than long-term storage is typically indicated by rising reserves. To put it simply, there is no tightening of supply. The notion that the 426 billion SHIB outflow is some sort of covert bullish catalyst is undermined by that alone. HOT Stories Crypto Market Prediction: Shiba Inu (SHIB) First Pivotal Critical Price Moment of 2026, Bitcoin's (BTC) Implosion Enables $100,000, Ethereum Handles $3,000 Like It's Nothing Bitcoin Dominance Logs Rapid Plunge as XRP, SHIB, and Other Altcoins Surge Shiba Inu (SHIB) Burn Rate Explodes 10,728%, Ripple Unlocks 1 Billion XRP, Bitcoin (BTC) Price Breaks Four-Year Market Cycle — Crypto News Digest Coinbase's Armstrong Unveils Top 3 Priorities for 2026 Sell-side volume Not completely, but could it all be sell-side? Wallet migrations, internal reorganization and short-term positioning probably make up a portion of that flow. However, markets value results rather than intentions. Thus far, the results are straightforward: volume spikes are erratic, SHIB is unable to recover broken levels, and every bounce almost instantly runs into overhead supply. Advertisement You Might Also Like Fri, 01/02/2026 - 19:44 Bitcoin (BTC) Price Analysis for January 2 By Denys Serhiichuk Technically speaking, SHIB's recent surge appears to be more of a relief move than a reversal. Although the RSI has risen from low levels, it has not entered any zone that has historically indicated a long-term trend shift. The fact that the asset is still trading below its long- and medium-term averages indicates that sellers are still in structural control. Perhaps indirectly, but can 426 billion SHIB influence the price? The situation would be different if that flow were combined with diminishing exchange reserves, tightening liquidity and evident demand absorption. That has not happened yet. This is not a front-run pump arrangement for investors. Advertisement #Shiba Inu #Shiba Inu (SHIB) News