Shiba Inu (SHIB) has recently shown signs of recovery as it breaks through a significant technical threshold on its daily chart. Despite this positive movement, increased reserves on exchanges and a positive net inflow of nearly 191.1 billion SHIB suggest that the upward momentum might encounter selling pressure in the near term.
Key Technical Breakthrough
Initially surging from below $0.00000500, SHIB is now trading around $0.00000609. This recent increase allowed the token to climb above its long-term moving average, which had been a persistent barrier to recovery attempts since August, around the $0.00000560 level.
Since the dip in June, seen around $0.00000410, higher lows have consistently formed. This pattern is further reinforced by short-term moving averages pointing upward. The breakout is underscored by a noticeable increase in trading volume, highlighting its technical significance.
SHIB’s breakthrough above the $0.00000560 level signifies overcoming a long-standing barrier on the daily chart with volume support.
Are Exchange Reserves Indicating Risk?
Yes, on-chain data suggest a cautious outlook. The total value of SHIB’s exchange reserves has reached $533.2 million, nearing a key threshold of $534 million. Meanwhile, the token reserves have increased by 0.22% in the last 24 hours, climbing to approximately 87.7 trillion SHIB.
During the same period, SHIB inflows to exchanges reached about 477.5 billion, while outflows were at 286.4 billion, resulting in a positive net flow of approximately 191.1 billion SHIB. This indicates a growing supply ready for trading, which could place additional pressure as the price attempts to maintain its critical breakout.
Tracking the right technical levels and observing investor actions are crucial in such periods. In the high-stakes meme token market, internet trends can rapidly convert into millions of dollars in interest. For instance, according to data shared by Fomo, a trade starting with $99 on Niu Lai and reaching approximately $370,000 exemplifies such market dynamics. Monitoring not just prices but also investor activities and token preferences is essential.
If buyers can maintain the $0.00000560 to $0.00000570 range, the price might retest the recent highs of $0.00000620 to $0.00000630. Surpassing this area could lead to revisiting the resistance levels of $0.00000650 to $0.00000670 from May.
In a bearish scenario, if exchange supply overwhelms buyers, a failure to sustain prices above $0.00000560 could raise doubts about the breakout’s durability. Dropping below the $0.00000520 to $0.00000500 zone might significantly weaken the current recovery structure.
The near half-trillion SHIB moving to exchanges presents a crucial test for how well buyers can support this breakout.
Overall, although SHIB has surpassed a vital technical point, closely monitoring exchange flows will be crucial in determining its future trajectory. If the positive net flow continues, the uptrend could encounter stronger selling forces.
