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Despite the recent impressive inflow of more than 100 billion tokens into Shiba Inu, the excitement is misplaced because the gains occurred in exchange reserves rather than holders' wallets.
SHIB exchanges getting fatter
CryptoQuant data indicates that SHIB's exchange reserves have increased significantly over the past week, reaching approximately 85.1 trillion tokens. A bearish indication, in the past, this kind of accumulation on exchanges has suggested that more tokens are being prepared for possible sale rather than long-term holding or staking.

This trend does not match the price chart's current activity well. Early in October, SHIB experienced a slight recovery, but it is still stuck in a long-term descending triangle pattern. The token's inability to overcome significant resistance levels, particularly the upper trendline of the triangle and the 100-day EMA, suggests a lack of bullish momentum.
Selling pressure has resisted every attempt to break above the 100 EMA, indicating that supply, not demand, continues to dominate the market. This view is also supported by volume. The recent decline in trading activity indicates that speculative interest is waning.
Shiba Inu trapped
SHIB's failure to break through the $0.0000135 level indicates that the asset is still trapped in a structurally bearish formation, with the price currently circling around $0.0000127. The possibility of additional declines is increased by the growing exchange reserves. A fresh wave of selling may be triggered if these tokens begin to be offloaded into the market, which would force SHIB toward the lower support level around $0.0000120 or even lower.
SHIB would need a clear decline in exchange reserves, which would indicate investor accumulation, as well as a clear breakout above the 100 EMA and the descending resistance line for a reversal to take place.
In summary, even though the number of SHIB tokens is increasing, this is occurring in the worst possible place. Shiba Inu's chances of a long-term recovery are still slim unless this trend changes quickly, as the rise in exchange-held supply indicates growing sell pressure.