Although significant long-term bearish pressure on Shiba Inu remains, a number of on-chain and market-flow metrics suggest the meme asset may be nearing a stabilization phase following weeks of consistent weakness, according to data from CoinGlass.
SHIB is still stuck below every significant moving average on the daily chart. The price recently breached the lower boundary of a short-term ascending structure, indicating that sellers continue to control broader momentum. In theory, the asset maintains the downtrend by continuing to print lower highs and lower lows.
Why it matters
Rising spot net flow — as opposed to derivatives activity — reflects actual token buying and selling, which analysts consider a more reliable signal of genuine market participation.
When exchange outflows consistently exceed inflows, fewer tokens remain available for immediate sale on trading platforms, which can reduce near-term sell pressure.
Low liquidation levels suggest the market has not yet reached either a panic-driven selloff or a euphoric rebound, meaning the current price environment may still be in a transitional phase.
Beneath the surface, however, the flow data is starting to change. The spot market activity of SHIB is one of the most noteworthy developments. On shorter time periods, spot net flow increased by over 283 percent, indicating a significant rise in actual buying and selling activity, as opposed to purely leveraged speculation. Because spot activity in cryptocurrency markets represents actual token distribution or accumulation, it typically carries greater weight than derivatives.
In a number of metrics, exchange outflows are still greater than inflows. According to current data, exchange outflows exceeded 580 billion SHIB, while inflows were approximately 461 billion. Because coins leaving exchanges are frequently linked to accumulation or reduced immediate sell pressure, this imbalance is considered significant. Additionally, exchange reserves are approaching the 80 trillion SHIB region. In general, declining reserves mean that fewer tokens are available on trading platforms to be quickly liquidated.
The positioning of derivatives presents a more nuanced picture. Speculative traders continue to exercise caution, as futures flow data continues to show sporadic negative net inflows. Liquidation data also remains quite low, indicating that the market has not yet experienced either a panic phase or a euphoric rebound environment.
The broader crypto market environment is also a meaningful factor. While altcoins are still struggling to establish independent trends, Bitcoin has recently cooled after experiencing strong upside momentum earlier in the quarter. Rather than raising bids across the board, traders are actively rotating capital, and liquidity remains selective.
However, the combination of diminishing exchange reserves, increased outflow dominance, and rising spot activity suggests that bears may be progressively losing ground. A recovery for SHIB has not yet been confirmed. That said, the current flow structure indicates that Shiba Inu might be closer to forming a local bottom than many traders currently anticipate — provided that general market conditions stabilize and Bitcoin avoids another significant correction.
