A recent surge in Shiba Inu’s exchange reserves has raised concerns about the token’s long-term stability. Despite a slight increase, analysts point to this trend as potentially contributing to increased sell pressure from exchanges, which have historically been linked to price declines for SHIB. 🤔 📈 📉
The asset’s momentum has waned due to structural weaknesses and a lack of upward movement above its short-term moving averages. Instead, the token is steadily flowing into exchanges, according to Exchange Netflow data, with approximately 47.9 billion SHIB being added in recent days. This signifies a trend towards liquidity, rather than increased buying activity.
SHIB’s current price chart underscores this trend as it remains significantly below its 50-day, 100-day and 200-day moving averages, all trending downward.
While the RSI indicates neutral conditions with a reading in the low 40s, the stable outflow patterns remain concerning. Over recent days, Outflow (Total) has been remarkably steady, albeit rising slightly by 2.9%. This stability is significant as it suggests long-term investors are not abandoning their position.
Traditionally, when meme coin structures begin to weaken, inflows surge while outflows cease entirely. However, the opposite appears to be happening with SHIB. Instead of a panic sell off, the token is exhibiting controlled rotation. This potential for reversal hinges on whether the overall market sentiment shifts in favor of Shiba Inu.