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As the asset experiences increased selling pressure, Shiba Inu is about to enter a critical phase. Recently, nearly 138 billion SHIB have been flowing into exchanges. This indicates that traders are willing to sell their holdings in the face of ongoing technical weakness, marking a significant change in market sentiment. The spike in exchange inflows, which is a definite indication that holders are transferring tokens from cold storage to trading platforms – usually a sign of increased selling activity – is confirmed by on-chain data.
Deep exhaustion
Following a brief attempt at recovery, SHIB is still stuck around $0.0000105 and is having difficulty moving above its previous support zone, which was between $0.0000117 and $0.0000122. In keeping with the bearish tone, this level has now turned into resistance. The overall structure of the chart presents a bleak image.
The daily trend is still trapped in a descending triangle, and the 200-day EMA, which is situated well above the current price levels, indicates that the market is deeply exhausted. The current sell-off began in early October, when SHIB broke below the psychological $0.0000100 threshold followed by a weak bounce.
This was caused by a breakdown from the long-term ascending support. A brief stabilization may be suggested by the recent positive netflow of more than 150 billion SHIB on Oct. 15, but it is probably more of a pause than a reversal. Historically, as liquidity accumulates on exchanges prior to further distribution, spikes in inflows frequently occur before periods of increased volatility.
Shiba Inu lower retests
SHIB might retest $0.0000095 or even lower levels close to $0.0000085, where prior accumulation zones are located, unless there is strong buy volume soon. Momentum exhaustion, both technical and social, is currently the main risk. It will be clear in the coming sessions whether this is a temporary surrender or the beginning of a more significant decline, as trading volumes are decreasing and sentiment is muted.
Over 138 billion tokens are leading the push back onto exchanges as the Shiba Inu sellout gets underway. In the short run, SHIB's prospects are still skewed toward further declines in the absence of a clear reversal or fresh retail momentum, supporting the idea that the $0.00001 range is no longer a solid support but rather a survival zone.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team