Fresh on-chain data indicating a surge in selling pressure on Shiba Inu (SHIB) has heightened market caution. Approximately 178 billion SHIB tokens have recently been moved back onto cryptocurrency exchanges, a shift that has triggered concerns about weakening momentum following an attempted recovery. As a result, total reserves held in exchanges climbed back above the 80 trillion SHIB mark on Monday.
Return to exchanges triggers alarm
Over the past 24 hours, the supply of SHIB tokens readily available for trading has grown markedly. For some time, a decline in exchange reserves toward the 80 trillion SHIB threshold was interpreted as investors moving funds to personal wallets and reducing the liquid supply available for sale. However, this latest wave of inflows signals a short-term reversal of that trend.
Shiba Inu is a memecoin built on the Ethereum network and is particularly favored by retail investors. For this reason, high-volume transfers of SHIB back to exchanges are closely watched as potential precursors to significant price movements.
The return of 178 billion SHIB to exchanges may not unequivocally indicate an imminent selloff, but analysts note that such large inflows have previously coincided with a spike in volatility, profit taking, or preparations for liquidations.
Technical outlook turns weaker
Deterioration in on-chain metrics has been accompanied by a worsening technical picture. The price broke down through the lower band of the rising wedge pattern that had supported it since March. Following this breakdown, SHIB slid back toward its lowest levels of the year, undermining scenarios for continued upward movement.
Trading below its 50, 100, and 200-day moving averages, SHIB is reflecting the persistence of a bearish trend. Momentum indicators further fail to signal a rebound, with the Relative Strength Index (RSI) retreating into the low 30s, underscoring ongoing weakness in demand and the continuing influence of sellers in the market.
Critical level in focus
The most closely watched support level in the market sits at $0.0000053. This zone is near a recently tested support region. Should sellers achieve a clear break below this threshold, investors holding on to short-term recovery hopes may begin scaling back their positions.
The simultaneous rise in exchange reserves, robust inflows, and technical breakdown have emerged as key factors undermining bullish expectations. Current data suggests selling pressure on SHIB is likely to persist in the near term.
