- Shiba Inu faces pressure as 47 billion tokens flood exchanges.
- Market uncertainty surrounds SHIB with increasing exchange inflows and selling.
- Shiba Inu’s future direction depends on inflows and market absorption.
Recent data shows that Shiba Inu (SHIB) is facing significant pressure as nearly 47 billion SHIB tokens moved onto exchanges in a short period. This influx of tokens onto exchanges raises concerns about potential sell-offs, even though it doesn’t guarantee immediate selling.
The movement of tokens to exchanges typically reflects a desire for liquidity, not necessarily a commitment to long-term storage. With such substantial transfers, SHIB now finds itself in a precarious position as it navigates market uncertainties.
SHIB continues to trade below its key moving averages, indicating a steady downward trend. The 200-day moving average, acting as a macro ceiling, remains on a downward slope, which is keeping the price in check.
Shorter-term Exponential Moving Averages (EMAs) continue to exert downward pressure, compressing the price from above. Despite these bearish signals, the price action has shown some resilience, with a shallow ascending base forming at the lows. While this structure isn’t yet bullish, it suggests that selling pressure is beginning to ease.
Market Sentiment and Potential Outcomes for SHIB
The market appears to be in a state of fatigue. The Relative Strength Index (RSI) in the low 40s suggests that sellers are losing momentum, but it also indicates that buyers have yet to take full control.
The absence of aggressive selling could point to a consolidation phase, with the market awaiting further developments. Notably, exchange inflows have been increasing, signaling that investors are positioning themselves for potential volatility.
Also Read: Analyst: XRP Is About to Explode Like in 2017, Here’s Why
Source: Tradingview
Two potential scenarios now seem likely. If the inflows continue and result in actual selling, SHIB could revisit recent lows or potentially dip lower before finding a base and establishing true demand.
On the other hand, if the market absorbs these inflows and the price holds steady, this could set the stage for a potential relief rally. In this case, the excess supply on exchanges could fuel a sharp move upward once selling pressure subsides.
As of now, SHIB’s future direction remains uncertain. The balance of risk has shifted, and traders are closely monitoring exchange inflows as an indicator of market sentiment. If the price stabilizes and sellers lose their grip, SHIB could rally. However, a surge in inflows combined with a price drop would likely accelerate the downward trend. Only time will tell which scenario will unfold as Shiba Inu continues to battle market forces.
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