Significant exchange outflows (-96 billion shib) indicate a shift from selling to holding, reducing immediate sell-side pressure and paving the way for stabilization or recovery from recent lows.
Analysis is based on verifiable on-chain data (exchange flows, active addresses) and technical chart patterns, providing a balanced perspective with clear caveats about the long-term trend.
The halt in selling pressure, evidenced by exchange outflows and stable network activity, suggests a potential short-term base formation and a modest recovery from recent lows, though a strong sustained rally is not yet confirmed.
The analysis focuses on immediate selling pressure relief and improvement in the short-term outlook; the article explicitly states that long-term trends remain precarious and a wider downtrend is still in effect.
Cover image via U.Today 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 stopped bleeding Still not enough Advertisement After months of ongoing downside pressure, Shiba Inu is beginning to show signs of relief. Recent market and on-chain data indicate that the asset may be past the most aggressive selling phase, at least temporarily, even though the overall trend is still precarious. Although this change significantly alters SHIB's short-term outlook , it does not ensure a sustained rally. Shiba Inu stopped bleeding Exchange flow data is the most significant advancement. Following a protracted period of net inflows, which are usually linked to holders getting ready to sell, Shiba Inu has started to see outflows take the lead. Moving tokens off exchanges typically indicates a preference for holding rather than selling. In addition to easing immediate sell-side pressure, this reversal sets the stage for price stabilization or recovery in the event that demand arises. SHIB/USDT Chart by TradingView This interpretation is reinforced by price action. Following the formation of a short-term base and a slight increase in volume, SHIB recently recovered from local lows. The move indicated that sellers are losing steam by pushing the price above short-term moving averages. The asset's structure no longer shows panic-driven distribution, even though it is still below significant long-term resistance levels. HOT Stories Morning Crypto Report: XRP Hits Brutal 760,456% Liquidation Imbalance, 'I Feel Fine': Ex-Ripple CTO Speaks Out on Retirement, Coinbase CEO Reveals Main Target for 2026 CNBC Declares XRP the 'Breakout Trade of 2026' Ripple President: We Still Plan to Remain Private Top US Exchange Puzzled by XRP Rally Still not enough Context is further enhanced by active address data. It appears that participation is not declining along with the price as network activity has remained stable and even slightly improved. This is significant because falling activity and declining prices frequently indicate deeper weakness. In the case of SHIB, engagement is still present, which raises the likelihood that recent lows could persist. Advertisement You Might Also Like Wed, 01/07/2026 - 08:34 Ethereum Network Just Delivered Best Fundamental Signal There Is By Arman Shirinyan Long-term moving averages are still sloping downward, and Shiba Inu is still in a wider downtrend on longer time horizons. Sustained exchange outflows and a discernible rise in spot demand would be necessary for any bullish continuation. Rallies may continue to be corrective rather than trend-changing in the absence of those circumstances. Right now, there are two possibilities. In the better scenario, steady network activity and ongoing exchange outflows enable SHIB to raise its base, paving the way for a slow recovery. In the less favorable scenario, inflows swiftly resume, indicating that short covering rather than true accumulation was the cause of the recent strength. Advertisement #Shiba Inu #Shiba Inu (SHIB) News