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With its exchange reserve just below 87 trillion SHIB, Shiba Inu is getting close to a significant on-chain milestone. With the most recent reading of roughly 86.9973 trillion tokens, the metric is just about 2.7 billion SHIB away from reaching 87 trillion. In comparison to the size of the reserve, the difference is negligible.
Not a bullish picture
Exchange reserves could rise above 87 trillion without the need for any extraordinary transfers, as they increased by an additional 0.04% in the most recent 24 hours. For SHIB, such a development would not necessarily be advantageous.
Exchange reserves quantify the quantity of assets stored in wallets linked to exchanges. Sustained growth typically indicates that more supply is immediately available for trading and possible sale, whereas declining reserves may be a sign that tokens are being transferred into private custody.
At the moment, the overall flow picture also favors exchanges. The total inflows are 271.53 billion SHIB, while the total outflows are 222.25 billion SHIB. As a result, netflow stays positive at about 34.47 billion SHIB.
Conflicting signals do exist, though. At roughly 502.1 million SHIB, the seven-day moving average of mean exchange outflows has fallen by 40.62 percent. While the overall outflow increased by 0.5 percent, the ordinary mean outflow increased by 0.51 percent. This implies that there is not currently a significant withdrawal wave that could quickly deplete exchange reserves.
Shiba Inu is back at it
The 87 trillion threshold is especially significant due to price action. After rising from the $0.000005 region, SHIB is currently trading at about $0.00000518. That level is in close proximity to both the shorter-term average at $0.00000501 and the 100-day EMA at $0.00000498.
As a result, SHIB has been able to maintain its immediate technical support, although there is still little upside momentum. Instead of an overheated market, the RSI is at about 54, indicating neutral to moderately bullish momentum.
The 200-day EMA at $0.00000570 continues to be the bigger barrier. The recent spike in SHIB above that threshold was promptly rejected. Selling pressure may become more challenging to withstand if exchange reserves firmly surpass 87 trillion while inflows continue to exceed outflows.
However, the threshold itself is psychological for the time being; what matters more is whether reserves keep rising after breaking it while SHIB simultaneously finds it difficult to move away from $0.000005.
U.Today Editorial Team
Dan Burgin
