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.
As on-chain data reveals a sharp rise in exchange inflows, Shiba Inu (SHIB) is under fresh bearish pressure, while the larger memecoin market continues to struggle with significant liquidations and lackluster momentum.
Billionaires are selling
According to recent metrics, over 303 billion SHIB entered exchanges in the past day, and Exchange Inflow (Top10) surpassed 6.1 billion tokens. The overall exchange outflow, however, did not keep up, indicating that more holders are getting ready to sell rather than transfer tokens into self-custody.
The consistent drop in exchange reserves is one of the most obvious warning indicators. The Exchange Reserve USD metric dropped more than 3%, indicating that the dollar value of SHIB sitting on exchanges continues to decline alongside price weakness, even though reserves fell 0.34% over the previous day.
There was a slight increase in active addresses, but it seems that transfer activity rather than actual accumulation caused the increase.
Additionally, the TradingView chart shows a declining structure. After repeatedly failing to recover important moving averages, SHIB recently broke out of a rising wedge formation. The fact that the price is still below the 50-, 100-, and 200-day moving averages shows that sellers are still in charge of the overall trend.
After failing to hold above the neutral 50 level, the RSI also saw a significant decline, heading toward oversold territory. This typically indicates growing selling pressure rather than accumulation when combined with rising exchange inflows.
Because it may indicate planned distribution, large holders transferring billions of SHIB to exchanges frequently causes panic in retail markets.
Shiba Inu's future
Sentiment in the markets for memecoins changes rapidly. Traders typically shift their capital into more compelling narratives or sell riskier assets completely once momentum wanes. As leveraged traders reduce their positions, SHIB may see another leg down if inflows continue to pick up speed while the price remains below major moving averages.
Still, there is a chance that the market will stabilize. SHIB may try to create a local bottom close to current levels if exchange inflows cool and active addresses keep rising naturally. Bitcoin and the larger cryptocurrency market would probably need to rebound before that could happen.
As of right now, on-chain metrics are bearish, and traders should anticipate ongoing volatility across all memecoins unless there is a clear return to buying pressure.
Dan Burgin
