- Shiba Inu faces increasing pressure from massive exchange inflows.
- SHIB’s support levels crumble as selling pressure intensifies across exchanges.
- Bearish sentiment grows as Shiba Inu struggles with market instability.
Shiba Inu (SHIB) is grappling with increasing volatility as it faces a surge in token inflows, creating added tension in an already fragile market. According to data from CryptoQuant, approximately 90 billion SHIB tokens were moved to exchanges in a short span, a move that could trigger further downside pressure.
This isn’t just a momentary fluctuation but a sign of potential larger selling pressures that could keep SHIB’s price in decline for the coming days.
The most recent data highlights a concerning trend for SHIB holders. Yesterday, the market saw a massive 137 billion SHIB in net inflows, effectively wiping out the gains made by SHIB in the days leading up to this spike. Despite a minor pullback in inflows, the overall picture remains bearish.
A more recent 24-hour reading showed that 77.9 billion SHIB tokens are still entering exchanges, indicating that selling pressure continues to mount rather than recede.
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Increased Market Strain
SHIB’s struggle is further compounded by the broader state of the cryptocurrency market. With Ethereum losing critical support levels and Bitcoin experiencing a downtrend, the risk appetite for digital assets has significantly diminished. .
This downturn in sentiment across the sector is exacerbating the bearish momentum in Shiba Inu, making it increasingly difficult for the token to reverse its course.
The situation is becoming more precarious for SHIB holders, as the coin faces a tough test of its support levels. The minor support zone around 0.0000083–0.0000085 failed to hold, leading to a sharp drop in price. The accompanying rise in trading volume suggests that sellers are firmly in control of the market, pushing SHIB lower.
Despite the relative oversold conditions indicated by the RSI, the lack of significant outflows means that the trend is likely to persist unless there is a drastic shift in market dynamics. With so much SHIB concentrated on exchanges, it’s clear that the token is now a liquidity risk.
Without a reversal in the flow of tokens and a stabilization in the broader market, SHIB’s near-term prospects remain uncertain.
The current situation underscores the difficulty Shiba Inu faces in regaining momentum. Until there is a significant change in market inflows and a reduction in volatility, SHIB could continue to experience downward pressure, leaving investors to navigate a challenging landscape.
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