Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Exchange inflows of Shiba Inu have increased significantly; in the last day alone, over 20 billion SHIB tokens have entered exchanges. Inflows increased from about 34 billion to over 51 billion SHIB, according to data from CryptoQuant, which is one of the biggest one-day spikes in recent months. Historically, these actions have been linked to increasing selling pressure because significant token transfers to centralized exchanges usually indicate that investors are ready to sell their holdings.
SHIB enters consolidation range
On the price front, SHIB is consolidating within a symmetrical triangle that has been forming since July, trading close to $0.0000126. The triangle is getting close to its apex, with the price trapped between resistance at $0.0000132 and support at $0.0000120. This pattern suggests that a major move may be on the horizon, and that volatility is building. But the spike in inflows raises a warning: if these tokens are really positioned for sale, it might cause the breakout to move lower.
Further compounding the uncertainty is the fact that SHIB’s price action has already been battling below its 200-day and 100-day EMAs, which have both served as potent resistance levels. Around 47 momentum metrics like the RSI stay quiet, indicating hesitancy and a lack of strong bullish conviction.
Volume has also stayed low in comparison to previous spikes, which is another indication that if selling picks up speed, the buying appetite might not be robust enough to handle large inflows.
Consequences for SHIB
This unexpected 20 billion SHIB exchange inflow has the wider consequence of warning traders to brace for increased volatility. Even though it does not ensure a sell-off, it increases the possibility of more immediate downward pressure, particularly if SHIB is unable to recover resistance levels above $0.000013. However, it might create the conditions for a surprise upward move after the triangle resolves if buyers absorb the inflows and the price maintains support.
SHIB is at a crossroads because it is rare for an exchange inflow spike of this size to go unnoticed. In the upcoming sessions, it will become clear whether this signals the start of renewed selling or paves the way for a squeeze.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team