An analysis showed Shiba Inu’s (SHIB) exchange holdings have fallen, which could ease selling pressure. But demand to drive further gains is not clear, with withdrawal volumes shrinking and network activity showing no major change.

U.Today, a blockchain media outlet, reported on Oct. 6 that Shiba Inu showed net outflows, with outflows from exchanges exceeding inflows. When tokens move off exchanges, the amount that can be sold immediately decreases, which can be supportive for prices.

On-chain analytics firm CryptoQuant said exchange holdings of Shiba Inu fell 0.11 percent over the past 24 hours to about 88.03 trillion tokens. Its dollar value slipped 1.42 percent to about $519.4 million.

Withdrawal volumes, however, have fallen from earlier levels. The seven-day moving average of average withdrawals dropped 51.4 percent, while active addresses rose only 0.87 percent. Network activity has not increased noticeably despite the decline in exchange holdings.

Shiba Inu traded at about $0.00000589 as of that day. It rebounded from below $0.00000500 in September and rose above $0.00000565, where key long-term moving averages sit. That price band has been seen as a major support zone where buying emerged during recent pullbacks.

On the upside, it is facing resistance in the $0.00000600 to $0.00000610 range. If it breaks through, September’s peak of $0.00000630 is expected to act as the next resistance level. The relative strength index (RSI) showed a mild bullish trend without reaching overbought territory.

The key to further gains is stronger buying. Even if the amount available to sell on exchanges declines, demand is needed to back it up. The analysis said that if it slips below $0.00000560, the recovery could weaken and prices may retreat to the $0.00000500 to $0.00000540 range.

The latest trend shows it is hard to judge direction in the Shiba Inu market based on liquidity levels alone. It again confirmed that what matters more than inflows themselves is whether that liquidity translates into actual price support.