Key Bullish Shiba Inu (SHIB) Metric Surges by 30%: When to Expect the Reversal?

The average outflow of SHIB tokens from exchanges has surged to 1.02 billion per transaction, crossing the 1 billion threshold. According to CryptoQuant, this movement is most likely fueled by retail investors, as it doesn't correlate with institutional SHIB wallets or funds.

Despite the surge in outflows, inflows remain larger, with approximately 86 trillion SHIB still sitting on exchanges. The market remains weak, with SHIB dipping to $0.00000416, close to its July low of $0.00000413.

Market Conditions

The broader cryptocurrency market struggles with a $1.6 billion liquidation and Bitcoin falling below the critical $70,000 level. Active addresses and transaction counts on SHIB's network have increased over the last 24 hours, though volumes remain extremely low, suggesting limited volatility ahead.

SHIB shows stronger correlation with altcoins like XLM, XRP, and Ethereum rather than Bitcoin. Most altcoins haven't seen additional selling pressure as they were already oversold, which could indicate a potential recovery alongside a broader market retrace.

Future Outlook

Multiple indicators suggest a possible retrace for SHIB, though the market remains grim. The most selling pressure SHIB could face may have already been injected, with momentum indicators not providing meaningful signals at current price levels.

There is a good possibility that SHIB will find ground for recovery sooner than anticipated, particularly if the broader market experiences a retrace that includes similar altcoins. The current low volume environment could actually be a positive sign for a bearish market, potentially stabilizing the token's price.