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Recent on-chain data indicates that roughly 150.4 billion tokens are moving toward exchanges, which is adding to selling pressure, as the asset tries to stage a recovery. Shiba Inu is still struggling for directional momentum. Price action, at the moment, shows a market torn between sustained general bearish pressure and fleeting attempts at a recovery.
Shiba Inu siding with bears
The 26-day EMA serves as an instantaneous resistance barrier, and SHIB is still well below its major moving averages on the daily chart. The fact that every recovery attempt in recent sessions has been capped close to this dynamic level indicates that medium-term price action is still controlled by sellers. Even though SHIB recovered briefly from recent lows, the move has not been able to change the overall trend structure thus far.
Increased selling intent is often indicated by an influx of tokens on exchanges, and this seems to be in line with SHIB's recent price behavior. Rather than confirming a sustained reversal, price momentum weakened once more after the inflow spike, pushing the asset back toward lower support zones. More downward pressure is usually the outcome of increased exchange supply, particularly when market sentiment is still cautious overall.
It might get worse
This outlook is further supported by volume analysis. Even though there have been sporadic buying spikes, they have not been sufficient to counteract the ongoing sell-side liquidity. Consequently, if support levels close to recent lows do not hold, SHIB is still susceptible to additional declines.
Notably, though, SHIB has shown that it can generate strong short-term recoveries following oversold situations. Short-term relief rallies are still possible, even though the overall trend is still weak, as indicated by the RSI level's slow recovery from depressed territory. Nevertheless, unless the price can recover and stay above the 26-day EMA, these rallies are probably going to encounter immediate resistance.
SHIB might keep moving toward lower consolidation zones unless exchange inflows slow and buyers regain control above moving average resistance. Whether support levels out or selling pressure picks back up will be determined in the upcoming sessions.
Vladislav Sopov
Dan Burgin