Shiba Inu Shows Signs of Early Recovery as On-Chain Data Turns Positive

Key Insights

Shiba Inu’s exchange outflow of 38.5 billion tokens signals reduced selling pressure and growing investor confidence in long-term holding.

Network activity and wallet participation are rising, with active addresses and transaction counts both showing modest daily increases.

Despite current technical resistance, sustained improvement in on-chain data may support a recovery trend forming in late 2025.

Shiba Inu (SHIB) is showing early signs of a market turnaround as key on-chain indicators turn positive. Despite its price holding steady around $0.0000119, the token’s underlying fundamentals are improving, hinting at the possibility of a recovery trend forming later in the year.

The most notable change appears in SHIB’s exchange netflow data, which records a substantial -38.5 billion SHIB outflow. This shift indicates that investors are moving their tokens off exchanges and into long-term storage, suggesting reduced selling pressure. Exchange reserves have also declined, supporting the view that fewer tokens are available for immediate trade, which typically reflects stronger market sentiment.

Network Activity Gains Momentum

Besides exchanging data, Shiba Inu’s network metrics are beginning to improve. Active addresses have risen by 1.12%, reaching over 252 unique wallets. Transaction volumes have increased by 1.09%, showing that network participation and transactional utility are expanding. These gains indicate that user engagement within the ecosystem is growing, often a precursor to renewed buying interest and liquidity inflows.

Additionally, SHIB’s velocity — a measure of how frequently tokens circulate within the market — has recorded a modest uptick. This suggests that holders are starting to interact with their tokens more actively. Such behavior often signals a shift from passive holding to broader market engagement, setting the foundation for stronger medium-term movement.

Technical Barriers Still Limit Breakout Potential

Technically, Shiba Inu remains constrained within a multimonth descending triangle on its daily chart. The Relative Strength Index (RSI) hovers around 43, showing weak momentum, and the price remains below both the 50-day and 100-day exponential moving averages. For a bullish continuation, SHIB would need to break above the resistance range between $0.0000124 and $0.0000128.

Overall, while Shiba Inu’s chart remains subdued, the improving on-chain dynamics present a healthier outlook for the token. If these positive indicators persist, they may lay the groundwork for a potential uptrend and a gradual recovery rally heading into the final quarter of 2025.

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