- Shiba Inu faces strong resistance, struggling to break key levels.
- Minor outflow of SHIB unlikely to trigger significant price reversal.
- Weak volume signals continued downward trend for Shiba Inu’s price.
Shiba Inu (SHIB) is currently trapped in one of the weakest market periods of the year. Despite recent efforts to bounce back, the asset remains stuck in a clear downtrend, unable to break through major resistance levels. All three key moving averages—the 50-day, 100-day, and 200-day—are acting as formidable barriers, preventing any upward momentum. This structural setup, which CryptoQuant describes as bearish, suggests that even a small outflow spike isn’t enough to reverse the trend.
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Will the 28 Billion SHIB Outflow Spark a Change in SHIB’s Price?
A recent withdrawal of 28 billion SHIB from exchanges has sparked some speculation that the price might see a reversal. Outflows from exchanges typically signal reduced selling pressure, as coins taken off exchanges are less likely to be sold immediately. While this could suggest some holders are opting for long-term positions, the scale of the outflow is too small to have any meaningful impact. At just 0.03% of the total supply on exchanges, this withdrawal is barely a blip on the radar.
Source: Tradingview
Despite this, it’s important to remember that price reversals usually require more substantial shifts in market conditions. A single day of moderate outflows is unlikely to cause a significant change in SHIB’s price, especially when the broader market sentiment remains weak.
Resistance Holds Strong as SHIB Fails to Gain Momentum
The price action confirms that Shiba Inu’s path is still weighed down by resistance levels. SHIB attempted several rebounds but failed to hold any gains, consistently falling back toward local lows. The price respects a descending trendline with accuracy, indicating that the broader market has yet to show any strong interest in SHIB.
Indicators such as the RSI, which is hovering in the high 30s, show mild oversold conditions. However, this doesn’t signal the type of extreme market panic that typically leads to rapid recoveries. Volume remains weak, signaling that there is little interest from investors in pushing SHIB’s price higher.
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