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.
According to data from CryptoQuant, Shiba Inu (SHIB) is having one of its most erratic weeks in recent memory, with exchange inflows rising by almost 200%. According to the most recent metrics, mean inflows to exchanges more than doubled from levels earlier in the week on Sept. 24, reaching nearly 2.94 billion SHIB. Concerns regarding the short-term price stability of SHIB are raised by the fact that an increase in tokens being transferred to centralized platforms frequently indicates an increase in selling pressure.
Symmetrical SHIB triangle broken
On the daily chart, SHIB broke out of a symmetrical triangle structure and is currently trading at about $0.00001221, consolidating just below its key moving averages. The technical picture is still shaky, even though the price is currently holding fairly steady. The 50-day and 200-day EMAs are still acting as ceilings on the rise, and SHIB has not been able to break above resistance levels around $0.00001300–$0.00001350. A surge in inflows makes the outlook more complicated.
This kind of on-chain activity frequently comes before significant sell-offs, especially when it occurs in tandem with technical malfunctions. If exchange inflows keep increasing, SHIB may test deeper support close to $0.00001150; if it fails, losses could accelerate to $0.00001000. But not every indication is negative. The token may not yet be oversold, as indicated by SHIB’s daily RSI staying in neutral territory.
SHIB volumes spike
Additionally, volume increases that do not immediately result in price breakdowns can occasionally be interpreted as a sign that buyers are absorbing selling pressure, which could lay the groundwork for a recovery. Notwithstanding the inflows, a recovery toward $0.00001350 is still possible if SHIB can maintain above the $0.00001200 level.
Exchange inflows are flashing red, but price resilience is offering a glimmer of hope as SHIB finds itself at a crossroads. According to the inflow data, sellers may soon take control and push SHIB closer to annual lows if bulls are unable to retake short-term resistances.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team