On-chain data shows approximately 549 billion SHIB tokens moving toward centralized exchanges, a development that has placed the meme coin in a precarious position. Exchange inflows of this scale typically signal that holders are preparing to sell. Combined with a weakening technical structure, the outlook for SHIB in the near term remains uncertain at best.
The broader market environment is not helping. SHIB has been trading below key trend lines for an extended period, and recent attempts to recover have failed to gain meaningful traction. Each bounce has stalled near local resistance, reinforcing the pattern of lower highs and lower lows that has defined the asset’s recent price action. Sellers remain in control.
Technical Structure Signals Continued Weakness
The chart paints a clear picture. Moving averages are sloping downward and acting as dynamic resistance, preventing sustained upward momentum. Buyers have attempted to step in at various points, but none of those attempts have produced follow-through. The most recent bounce was brief. Price quickly stalled near resistance and retreated, a sign that demand remains thin.
This structure matters. In a strong uptrend, large exchange inflows can be absorbed by aggressive buying. That is not the current situation. SHIB is trading below critical levels, and liquidity appears limited. Under these conditions, even modest selling pressure can produce outsized price declines. Traders watching the chart have little technical evidence to suggest a trend reversal is forming.
Support levels are now in focus. If SHIB fails to hold its recent local lows while exchange inflows continue to climb, the probability of another leg lower increases considerably. The asset needs to establish a credible base before any recovery narrative can take hold.
At the time of writing, Shiba Inu is trading at around $0.00000632, following a 5.34% increase in the last 24 hours.
On-Chain Data Reflects a Market Leaning Toward Supply
The on-chain environment reinforces what the chart is already showing. Rising exchange reserves and increasing inflow volumes suggest that a meaningful portion of the market is positioning to reduce exposure. This does not guarantee a sell-off, but the direction of the data is clear. Supply is building. Demand is not keeping pace.
When tokens move to exchanges at scale, it shifts the market balance. Buyers must absorb that supply for prices to hold. Right now, there is limited evidence of that absorption taking place. The behavior is consistent with a market where confidence is low, and participants are leaning toward liquidation rather than accumulation.
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