- Shiba Inu struggles with resistance, facing heavy selling pressure.
- Increased token inflows to exchanges heighten Shiba Inu’s downward momentum.
- SHIB’s recovery attempts falter as market sentiment remains bearish.
Shiba Inu has found itself at a critical juncture as recent on-chain data shows that approximately 150.4 billion tokens have been moved to exchanges. This surge in supply is intensifying selling pressure, especially as the asset attempts to stage a potential recovery. The market is showing signs of indecision, with Shiba Inu caught between continued bearish sentiment and brief, fleeting attempts at a price rebound.
Despite these occasional rallies, Shiba Inu (SHIB) continues to face obstacles in overcoming its resistance levels. The 26-day exponential moving average (EMA) has proven to be a formidable barrier, capping any recovery attempts in recent days. This is evident from the asset’s failure to break past this resistance on multiple occasions, reinforcing the notion that sellers are still firmly in control of the market’s direction.
While SHIB did manage to recover from recent lows, these short-term rallies have not been strong enough to alter the prevailing trend. The token remains well below its major moving averages on the daily chart, signaling that the medium-term outlook is still dominated by downward momentum.
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Exchange Inflows Adding Pressure
The inflow of such a large quantity of tokens onto exchanges is typically indicative of heightened selling intent, and this is directly impacting SHIB’s price. After a brief recovery, the price momentum quickly faltered, pushing SHIB back toward lower support zones. With market sentiment remaining cautious, the increased supply in exchanges adds more downward pressure, preventing a sustained recovery. Moreover, historical patterns suggest that when tokens flow into exchanges, it is often a sign that more selling may follow, especially if the broader market sentiment remains cautious.
Although there have been sporadic spikes in buying activity, they have not been sufficient to outpace the ongoing selling pressure. The asset is likely to face more downside risks if support levels near recent lows fail to hold. If the price continues to be capped by the 26-day EMA resistance, it may be poised for further declines unless there is a significant shift in market dynamics.
Short-Term Relief Remains Possible
Despite the overall bearish outlook, Shiba Inu has demonstrated the ability to generate short-term relief rallies, particularly when it enters oversold conditions. These temporary recoveries could still occur, especially with the Relative Strength Index (RSI) showing signs of recovery from oversold levels. However, without a clear break above the 26-day EMA, these rallies are unlikely to lead to a sustained upward trend.
Source: Tradingview
In conclusion, Shiba Inu’s price action is still largely controlled by sellers, and the influx of tokens onto exchanges suggests more downward pressure could be on the horizon. Unless the token can break above its moving average resistance and buyers regain control, SHIB is likely to continue consolidating at lower levels.
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