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With a sharp increase in exchange inflows, Shiba Inu is under fresh selling pressure. More than 157 billion SHIB tokens have been added to exchanges in the past day, which usually indicates an increase in the desire to sell rather than hold. Large inflows like these are frequently seen by traders and investors as a sign that the market may be getting ready for more declines.
Shiba Inu stays down
As of this writing, SHIB is trading close to $0.0000055, continuing the downward trend that has dominated its performance for months. The token’s overall structure is still weak, and the recent spike in exchange inflows supports worries that sellers are still in control, even though the token was able to temporarily stabilize following a string of steep declines earlier this year.
One of the most obvious indicators of possible distribution is exchange inflows. Large token transfers from private wallets to trading platforms typically indicate that holders are getting ready to sell their holdings. On the other hand, the signal is typically bullish when assets exit exchanges because it indicates accumulation and long-term holding. Thus, the most recent inflow of 157 billion SHIB indicates increasing selling activity throughout the market.
Shiba Inu below key thresholds
This interpretation is supported by the chart’s price action. The medium-term indicators, which are still firmly sloping downward, are among the key moving averages that Shiba Inu is trading well below. This arrangement suggests that any attempts at recovery will probably encounter significant opposition, making sustained upward momentum challenging to attain in the near future.
Additionally, volume trends indicate that the market is still cautious. Although there has been active token movement, as evidenced by the recent inflow event, broader participation has not resulted in significant buying pressure. Rather, with sporadic attempts at stabilization, the asset has been declining.
The most important message for investors is that supply pressure is increasing once more. SHIB may see more selling waves if the tokens that have just joined exchanges start to appear on the market. Under such circumstances, the asset might keep experimenting with lower support zones until more robust demand appears.
Dan Burgin
Vladislav Sopov
