Selling pressure on Shiba Inu has come back into focus as the quantity of tokens moving to exchanges surged sharply. According to on-chain data, total exchange inflows have now exceeded 407 billion SHIB. Analysts note that surpassing the closely watched 390 billion SHIB threshold reinforces the negative sentiment currently surrounding the meme coin.
Exchange inflows and reserve increases
Exchange inflows reflect investors transferring their assets to wallets open for trading. While such a move does not always equate to immediate selling, it typically increases available supply, a pattern often observed just before periods of heightened volatility. The ongoing weakness in SHIB’s price has only amplified the significance of this trend.
Latest on-chain data suggests a partial reversal of the previously positive supply-side trend. Exchange reserves have risen above 80.25 trillion SHIB, and net flows remain solidly positive, highlighting that more SHIB tokens are entering exchanges than leaving. Shiba Inu, a widely held meme coin created on the Ethereum network, is noted for its broad user base.
Recent data indicates that the amount of SHIB flowing into exchanges has considerably outpaced outgoing transfers, pointing to a growing pool of tokens ready for trading.
Technical indicators confirm continued weakness
Technical charts echo the bearish signals seen in on-chain activity. SHIB recently broke down below the ascending wedge pattern that had supported its price for much of the spring. This breakdown reduces the chances of a rebound and has pushed the token back toward the lower end of its trading range.
SHIB remains beneath its 50, 100, and 200-day moving averages, underlining that sellers still dominate the market structure. Momentum indicators also paint a weak picture; the Relative Strength Index (RSI) is hovering near 36, a clear sign of subdued buying interest.
Glossary: RSI is a technical indicator that measures the speed and strength of price movement. Readings below 30 suggest oversold conditions, while above 70 implies overbought territory.
SHIB trading below its 50, 100, and 200-day moving averages signals that sellers continue to control the market.
Key support level under observation
In the short term, the critical area is the support zone around $0.0000054. Buyers have managed to hold this level so far, but repeated tests of the same support can eventually weaken defenses. If sellers break through this floor, SHIB could face further downside risk.
Currently, the combination of rising exchange reserves and increased inflows suggests that bears remain in charge. Unless buying demand picks up soon, this growing ready-to-sell supply on exchanges is likely to keep exerting pressure on the price of SHIB.
