Shiba Inu is experiencing significant downward pressure. Data shows approximately 324 billion SHIB tokens moved to exchanges within a 24-hour period. This substantial influx raises concerns about the token's near-term price stability.
The movement of tokens from private wallets to trading platforms typically indicates preparation for sales rather than long-term holding. Exchange reserves have climbed steadily in recent sessions. This pattern suggests holders are positioning to exit their investments.
Exchange Metrics Paints a Bearish Picture
Net inflow data confirms more tokens are entering exchanges than leaving. This positive exchange netflow marks a critical shift in market dynamics. When inflows exceed withdrawals, it generally signals reduced confidence among holders.
Recent attempts at price recovery have proven short-lived. Each upward move met immediate resistance from fresh supply entering the market. The asset struggled to maintain positions above key moving averages. Technical indicators align with the concerning on-chain trends.
SHIB/USDT Chart, Source: TradingView
Active addresses and transaction counts showed modest increases. However, these metrics do not necessarily reflect bullish sentiment. Current market conditions suggest the uptick represents position closing rather than new accumulation. Traders appear to be using temporary price strength as exit opportunities.
Token velocity remains elevated across the network. High velocity can indicate two different scenarios. In some cases, it reflects growing adoption and usage. In others, it points to speculative trading and rapid turnover. The combination of high velocity with rising exchange inflows suggests the latter scenario is playing out.
Price Recovery Shows Resilience Despite Headwinds
Shiba Inu currently trades at approximately $0.00000894, marking a 5.16% decline over the past 24 hours. The token has demonstrated significant strength over the past week with a 23.9% price increase.
SHIB’s price action over the past 24 hours (Source:CoinCodex)
