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Shiba Inu (SHIB) continued to face selling pressure as exchange inflows climbed and technical indicators pointed to weakening market demand. Recent on-chain data showed trillions of SHIB tokens moving to centralized exchanges, while the token remained below key moving averages. At the same time, derivatives activity strengthened as open interest and funding rates increased, creating mixed signals for traders monitoring the asset's next move.
Recent on-chain data showed a sharp increase in SHIB deposits to centralized exchanges. Exchange inflows exceeded 240 billion SHIB, while exchange outflows reached nearly 295 billion SHIB during the same period.
Although overall exchange net flow remained negative, the sudden rise in deposits drew attention across the market. Large transfers to exchanges often precede selling activity, prompting traders to monitor the movement closely.
As a result, many market participants reduced buying activity instead of increasing exposure. Rather than entering new positions, traders waited for stronger signals before committing additional capital.
SHIB also continued to trade below its 50-day, 100-day, and 200-day moving averages. Those indicators remained bearish after the token broke below a multi-month rising wedge pattern.
Since that breakdown, every recovery attempt has lost momentum as sellers returned during rallies. The repeated rejections at higher levels reduced confidence among buyers seeking a sustained rebound.
At the same time, speculative interest remained limited. SHIB has historically relied on strong retail participation, social media attention, and rapid inflows of risk capital. Those drivers have remained largely absent as Bitcoin, Solana, and other cryptocurrencies have attracted much of the available investment entering the digital asset market.
Meanwhile, network activity moved in the opposite direction. Active addresses, active sending addresses, and daily transaction counts all increased during the last 24 hours. Even so, investors continued to focus on price performance instead of network usage as SHIB kept recording lower highs and lower lows. Can stronger on-chain activity eventually outweigh persistent price weakness?
While spot market demand remained soft, the derivatives market recorded stronger activity. Shiba Inu perpetual futures open interest rose to $31 million on Monday after standing near $18 million one day earlier.
The latest increase followed a previous decline that pushed open interest to $26 million on Wednesday, its lowest level since September 2024. The rebound suggested that traders had started opening new positions after that earlier drop.
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At the same time, the OI-weighted funding rate stayed positive. The metric increased to 0.011% on Monday from 0.0052% the previous day.
A positive funding rate indicated that traders were increasingly positioned for higher SHIB prices. As derivatives activity improved, market participants continued balancing stronger futures positioning against persistent weakness across spot price action and technical indicators.
Shiba Inu continued to face selling pressure as exchange inflows increased and technical indicators remained weak. At the same time, stronger futures open interest and a positive funding rate reflected renewed trader participation. Market participants will likely continue watching whether improving derivatives activity can support SHIB price momentum.
