Shiba Inu has recently experienced a notable shift in its on-chain activity, leading to some improvement in market sentiment. According to data from CryptoQuant, approximately 100 billion SHIB tokens have been withdrawn from exchanges over the past day. While many market observers view such an outflow wave as a bullish indicator, suggesting investors are choosing to hold rather than sell, the reality is more nuanced.

On-chain data highlights a net outflow of 27.3 billion SHIB across exchanges, indicating a preference among investors to withdraw tokens rather than deposit them. This behavior is typically associated with accumulation phases, where participants opt to hold assets for potential future gains. However, in the context of Shiba Inu, these substantial outflows are deemed statistically insignificant in terms of direct market impact. This is primarily due to the immense circulating supply of SHIB, which exceeds 589 trillion tokens, diluting the effect of even large withdrawals.

Despite the limited direct market impact, sentiment plays a crucial role, and SHIB appears to be benefiting from a psychological boost. The asset is currently trading at $0.0000092 on the daily chart, showing a slight 2% intraday gain after bouncing off its 2024 support zone around $0.0000090. However, a deeper look at technical indicators reveals a mixed picture. While short-term moving averages (20-day and 50-day) are beginning to flatten, hinting at a potential decrease in selling pressure, the price remains below the 200-day EMA, which is considered a strong bearish signal.

The slight rebound observed can be partly attributed to the Relative Strength Index (RSI) standing at 38, suggesting that SHIB is still in somewhat oversold territory. Nevertheless, there is insufficient evidence to confirm a broad trend reversal. The market currently lacks the speculative momentum that fueled previous SHIB rallies, and trading volume remains low. In essence, while the exchange outflows provide a glimmer of hope, they are unlikely to independently drive a significant change in the market. The underlying market structure continues to be weak, and without a major shift in demand or liquidity, SHIB's price is projected to remain within the $0.000009 to $0.000010 range. The current bullish narrative appears to be based more on sentiment and anticipation than on robust fundamental improvements.