Data on the Shiba Inu coin chain shows that positions have accumulated and prices are approaching lo

Data on the Shiba Inu coin chain shows signs of hoarding, and the price is close to recent lows.

Shiba Inu coin, a well-known meme cryptocurrency launched in 2020, continues to face difficulties on the price chart. After multiple failed attempts at recovery, the token's trading price has reached near recent local lows. Although prices continue to weaken, the latest on-chain indicators show a positive trend in underlying network activity.

Seven of the ten indicators on the chain turned bullish

According to the latest on-chain analysis, seven of the ten major indicators monitored by Shiba Inu Coin showed bullish signals. This development suggests that even though Shiba Inu still faces pressure in the broader market, its underlying network conditions may be improving.

One of the key factors is the reduction in exchange reserves. This usually means less selling pressure because there is less token available for trading on the trading platform. This trend is further confirmed by the exchange's net flow, which is still negative, at about-64.8 billion Shiba Inu coins. Negative net flow indicates that more tokens are being withdrawn from exchanges than deposited, which is often interpreted as investors are hoarding.

Another indicator, the number of active addresses, has increased by more than 1% in the past 24 hours. The moderate growth in activity at this address suggests that user engagement is continuing and that the network is still attracting participants despite falling prices.

The outflow from the exchange also exceeded the inflow. About 250.2 billion Shiba Inu coins were withdrawn, while only 185.4 billion were deposited. This data suggests that investors are moving more tokens to self-custody rather than preparing to sell them.

Further support comes from the two indicators of average exchange inflows and average exchange outflows. Both have increased, but the average size of outflow transactions is significantly higher, indicating that large households are moving large amounts of Shiba Inu coins away from exchanges.

On the technical side, the relative strength index of Shiba Inu has rebounded from the oversold area and gradually climbed. While the token is still below important moving averages, these momentum indicators suggest that bearish sentiment is beginning to ease.

However, three of the ten major signals remain bearish or neutral. Shiba Inu coins continue to trade below the 50th, 100th and 200th moving averages. The value of exchange reserves denominated in US dollars fell with token prices, while exchange inflows remained high, reflecting the continued caution of market participants.

Although many attempts at price recovery have failed and the technical aspects of Shiba Inu remain bearish, analysts pointed out that there is a clear divergence between the weak price chart and improving on-chain indicators.

On-chain trends point to potential recovery

If hoarding continues and balances held on exchanges continue to decline, some market observers believe Shiba Inu may be preparing for a larger rebound once broader market sentiment improves. For now, chain participants seem to be more optimistic than the token price chart suggests.

Shiba Inu is an Ethereum-based meme that has built a strong online community and gained widespread attention along with other similar meme tokens. Although its prices have struggled recently, trends in online activity and hoarding could provide hope for a turnaround in the future.

Mini Dictionary

Relative Strength Index (RSI): A momentum indicator that measures the speed and change of price change. Traders often use it to identify overbought or oversold conditions in the market.

Overview of key indicators

Exchange reserves : Decrease, meaning reduced selling pressure.
Net exchange flow :-64.8 billion Shiba Inu coins, meaning hoarding trend.
Active addresses : Increase by more than 1% in 24 hours, meaning an increase in user activity.
Exchange Outflows/Inflows : Outflows of 250.2 billion and inflows of 185.4 billion, which means that more tokens are transferred to self-custody.
Shiba Inu Price and Moving Average : Lower than all major moving averages, meaning technical bearish.