An intriguing pattern has surfaced in the world of Shiba Inu, drawing significant interest over recent months. Despite the cryptocurrency struggling on price charts and enduring a downtrend, exchange data show that SHIB holders are remarkably hesitant to sell off their holdings.
Why Are SHIB Holders Not Selling?
Current on-chain data reveal that a mere seven wallets have deposited Shiba Inu tokens into exchanges recently. This does not imply that only seven wallets made these transfers, but it does highlight a notably low inflow from individual addresses, suggesting diminished distribution pressure across the market.
Operating as a meme coin on the Ethereum network and supported by a massive community, Shiba Inu has maintained investor interest. Notably, an increase in token transfers to exchanges is absent, even though price pressures are evident.
Within the last 24 hours, the volume of tokens flowing into exchanges fell sharply by over 69%, indicating a significant reduction in SHIB moving to trading platforms. Nevertheless, there are slight increases in active sending and receiving addresses, suggesting ongoing network engagement.
Can SHIB Overcome Its Price Hurdles?
Recent data give further weight to this observation. Exchange deposits dropped over 69% in the past day, yet active address figures have seen small upward trends. Although these trends balance each other out, SHIB is engaged in a price recovery mission after its recent declines.
Currently, SHIB is making efforts to rebound, buoyed by local support levels near $0.0000045. Indicators like the RSI suggest a possible easing of selling pressure. However, for a true bullish turn, SHIB first needs to contend with resistance around $0.0000055.
The divergence between SHIB’s price movements and behaviour concerning exchange flows is striking. Normally, a weak market prompts asset movements to exchanges as holders plan sells. In SHIB’s case, the opposite is occurring: despite price drops over months, holders are refraining from offloading their assets.
If the trend of reduced exchange deposits persists, with demand remaining steady, market supply tightness could intensify. While this might not trigger an immediate breakout, it could gradually ease one of SHIB’s main challenges—persistent selling pressure.
