- SHIB faces increased selling pressure with 157 billion tokens flooding exchanges.
- Exchange reserves rise, signaling potential downside as SHIB faces volatility.
- Rising inflows suggest imminent breakdown as SHIB struggles at key resistance.
Shiba Inu (SHIB) is currently under intense selling pressure after 157 billion SHIB tokens flooded exchanges over the last three days. On-chain data shows that exchange inflows have increased dramatically, which indicates that most holders are about to sell their holdings.
Inflows of this magnitude usually forecast the season of downside volatility, where more tokens in circulation may tend to put pressure on the sell aspect.
Exchange metrics indicate that net inflows rose by 79.8 billion SHIB at a boost of 0.52%. On the other hand, the outflow in exchange was only 546 billion SHIB, which amounts to approximately 1.13%. This ratio is a sign that there is more payment, when compared to withdrawal, to exchanges, increasing the chances of a falling price.
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Rising Exchange Reserves Point to Increased Selling Risk for SHIB
Furthermore, SHIB’s exchange reserves have continued to climb, reaching a total of 86.08 trillion tokens. This increase suggests there is a larger supply of SHIB available for immediate sale, raising concerns about further market pressure.
Although there was an increase in reserves, the USD value of exchange reserves decreased by 1 point, which indicates that the SHIB price fell to $0.000013.
Source: Tradingview
The SHIB/USDT chart indicates a narrow symmetrical triangle formation, with the resistance close to $0.000014 and the support level near $0.0000124. The latest declines of the upper limit of this triangle imply that SHIB can experience additional market declines if the trend of increasing exchange inflows continues.
If they persist with these inflows, chances of SHIB disintegrating out of its present price range are high, and it may start decreasing.
As these red flags continue to accumulate, the strain on Shiba Inu is increasing. If SHIB fails to hold key support levels, it could experience more significant losses in the coming days. As the market sentiment shifts towards selling, the future of SHIB remains uncertain.
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