Over the past week, Shiba Inu has seen a significant increase in exchange balances, with exchange reserves rising by about 13.88 trillion tokens. Such a significant influx of tokens to trading platforms would raise concerns about an upcoming wave of selling pressure under normal market conditions. However, SHIB has so far avoided the kind of aggressive liquidation that many traders feared, even though the amount of supply available on exchanges has increased.
Withstanding wave of selling
According to on-chain data, total exchange inflows reached 422.97 billion SHIB, while SHIB’s exchange reserve increased to approximately 80.45 trillion tokens. At the same time, there was a positive net flow of 158.50 billion tokens, as exchange outflows continued to be high at 264.47 billion SHIB. Even though the net flow shows that more tokens are coming into exchanges than going out, there hasn’t been a corresponding market dump due to the size of the inflows.
The comparatively steady network activity seen during that time may be one explanation. Active receiving addresses came close to 90,916, while active addresses rose to 138,666. At almost 2,954 transactions, the transfer count likewise held steady. Despite the recent price weakness, these metrics imply that market participation is still high.
Pressure on Shiba Inu rises
Technically speaking, SHIB remains under pressure. The asset is trading below its key moving averages on the daily chart, with the 50-day, 100-day, and 200-day averages serving as overhead resistance. In March, April, and May, price action was supported by a rising channel pattern, which SHIB recently broke below. The Relative Strength Index (RSI) dropped below 30 as a result of the breakdown, pushing the token into oversold territory before beginning to stabilize.
You Might Also Like
The absence of significant selling pressure despite growing exchange reserves may suggest that many holders are moving tokens for market-making, portfolio repositioning, or liquidity management rather than for quick liquidation. Furthermore, long-term holders, who might be hesitant to sell at the current price levels, still control a sizable portion of the SHIB supply.
Current on-chain and trading data indicate that SHIB’s market has absorbed the additional supply surprisingly well, even though the expanding exchange reserve is still a metric worth keeping an eye on. The general sentiment of the cryptocurrency market and whether exchange inflows pick up speed in the upcoming weeks will probably determine whether this resilience lasts.
Be the first to comment