Shiba Inu exchange outflows largely returned to normal after once plunging 42 percent, but the market is watching for potential selling pressure as exchange inflows still exceed outflows.

On Aug. 30 local time, blockchain outlet U.Today reported that Shiba Inu’s exchange outflows have rebounded recently, but broader exchange activity makes it hard to view it as a clear bullish signal.

As of recently, Shiba Inu exchange outflows were about 172.06 billion SHIB, up 0.78 percent from 24 hours earlier. Netflow came to about 28.79 billion SHIB, and exchange inflows were about 200.85 billion SHIB, higher than outflows. What the market is watching is the balance between inflows and outflows more than the 42 percent decline itself.

Lower exchange outflows mean fewer tokens are leaving exchanges. By contrast, if inflows remain higher, more tokens could move onto exchanges. That structure raises the likelihood of tokens being released into the market, but current data alone are insufficient to label it a "major sell-off".

Outflows returned close to the normal range after the sharp drop, but the increase was less than 1 percent. Over the same period, exchange holdings rose 0.03 percent and inflows increased 0.61 percent. With overall changes small, it is hard to say tokens suddenly rushed onto exchanges.

The 7-day average exchange outflow indicator shows a different signal. It is currently up 96 percent, indicating the average withdrawal volume has risen sharply compared with earlier levels. That partially eases pessimism that had been based only on the initial drop in total outflows.

Price action remains unstable. Shiba Inu is trading around $0.00000510 and remains below its 200-day moving average of $0.00000571. The nearest key support is the $0.00000500 area. If it breaks below that level and exchange inflows start rising faster than outflows, the case for expanding selling pressure could become much stronger.

So far, the trend is far from a one-sided signal. The earlier 42 percent decline in outflows has mostly returned to the normal range, but exchange activity alone has not formed a basis for a strong rebound. Inflows continue to outpace outflows, and the recovery in total outflows has remained modest. In this situation, the market is likely to watch both the pace of exchange inflows and whether the $0.00000500 support holds.