What to Know
- Shiba Inu exchange reserves climbed above 80 trillion SHIB again.
- Approximately 178 billion SHIB returned to exchanges within one day.
- Weak technical indicators and key support risks continue worrying traders.
Shiba Inu’s latest recovery effort has encountered a setback as approximately 178 billion SHIB returned to cryptocurrency exchanges within a single day. The development has raised concerns among traders because it reversed a decline in exchange reserves that many investors viewed as a positive signal for the token’s long-term outlook.
According to on-chain data, exchange reserves climbed back above 80 trillion SHIB on Monday while inflows increased significantly. Many market participants had expected reserves to continue falling as holders transferred tokens into private wallets. Such movements typically reduce liquid supply and limit the number of tokens available for immediate selling.
Instead, the recent inflows increased the amount of SHIB available on trading platforms. While exchange transfers do not automatically trigger selling activity, they often precede periods of higher volatility as traders prepare to adjust positions or secure profits.
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Rising Supply Adds to Technical Weakness
The return of billions of SHIB comes as the token continues struggling to regain momentum. Besides the increase in exchange reserves, SHIB recently lost a key technical structure that had supported bullish expectations for several months. Market data shows the asset broke below the lower boundary of a rising wedge pattern that had guided price action since March. That breakdown invalidated a potential bullish continuation setup and pushed the token back toward yearly lows.
Additionally, SHIB remains below its 50-day, 100-day, and 200-day moving averages. This positioning indicates that sellers continue maintaining control across multiple timeframes. Moreover, momentum indicators suggest that buying demand remains limited. The Relative Strength Index has declined toward the mid-30 range, reflecting persistent weakness in market sentiment. Traders are now closely monitoring the $0.0000053 support level, which represents one of the most important price zones in the current market structure.
Source: Tradingview
A successful defense of that level could help stabilize price action. However, a decisive breakdown may expose SHIB to additional downside pressure. With exchange reserves rising and technical indicators weakening, investors will continue monitoring whether buyers can regain control during the coming trading sessions.
Also Read: Bitcoin’s Spring Rally Was a Fakeout, Says Benjamin Cowen as June Weakness Returns
