After months of sustained downward pressure, the Shiba Inu (SHIB) price is showing early signs of structural stabilization. On the price chart, SHIB has entered a narrow consolidation range, holding slightly above recent local support rather than continuously making lower lows. Without confirmation from volume and broader market participation, this type of compression typically indicates exhausted selling pressure, rather than continuation of a bull market.
There is a discrepancy in the trading liquidity of Shiba Inu.
On-chain activity has become more pronounced. Indicators such as CryptoQuant show that SHIB has experienced significant net inflows, effectively removing approximately 8.6 billion tokens from centralized exchanges within 24 hours.
Net inflow is significantly negative (around -108 billion), indicating that token outflows exceed inflows. Since assets are being transferred to private wallets rather than liquidated on exchanges, this typically suggests lower short-term selling pressure.
Foreign exchange reserves surge
A slight decline in foreign exchange reserves further reinforces this view. A reduction in reserves decreases the supply available on trading platforms, which could amplify price fluctuations if demand increases. However, timing is critical, and with the market currently lacking clear direction, this factor alone does not guarantee an upward movement.
Upon closer observation, both inflow and outflow metrics for the exchange are high, but outflows dominate. This suggests active position adjustments rather than passive holding. Meanwhile, active address data has slightly increased, but not enough to indicate a large influx of new participants.
From a forward-looking perspective, this pattern could create a conditional bullish scenario, particularly if an unexpected breakout occurs. SHIB could combine declining foreign reserves, surging demand, and especially a retail capital inflow back into memecoins.
It is incorrect to say that centralized exchanges are declining. In fact, this is merely cyclical capital rotation and temporary fund outflows.
The most interesting question is... will demand for SHIB respond to the tightening supply? If so, the current consolidation could break upward. If not, this is just another brief pause in the broader market sideways movement.