Shiba Inu: 31,740,200,000 SHIB Hits Exchanges, but Price Rises Instead

Shiba Inu is facing renewed selling pressure from token holders, but its price has refused to fall below key support levels.

Uncertainty has been the theme for Shiba Inu ($SHIB) over several weeks now. Prices have dropped massively from prior highs, with $SHIB losing its place as the second-largest meme coin by market cap. While its price has stabilized lately, the token has not found the momentum to recover as much as some other cryptocurrencies.

Key Points

• CryptoQuant data shows a net inflow of 31.74 billion $SHIB into exchanges in the past 24 hours.
• Although this does not translate to an immediate sale, it could boost immediate selling pressure.
• However, the 7-day moving average of mean $SHIB inflows into exchanges has dropped by 14.5% to 697.8 million tokens.
• At the same time, OI has crashed 6% and volume by 24% in the past 24 hours.
• The $SHIB price has risen over 1% to remain above the crucial $0.0000060 level instead of succumbing to this pressure.

Shiba Inu Sees Fresh Exchange Inflows

CryptoQuant data shows a net inflow of 31.74 billion $SHIB into exchanges in the past 24 hours, as deposits outpaced withdrawals. This suggests that holders are increasingly moving the token from self-custody or third-party systems to centralized platforms.

Although this does not translate to an immediate sale, it increases the chance of these investors liquidating their positions, as these tokens are in platforms where selling is easier. Consequently, it adds selling pressure to Shiba Inu’s price and affects market sentiment.

The move also increased exchange reserves slightly to 81.0039 trillion. A growing exchange reserve means more supply availability, which may neutralize demand. In a market where digital assets are struggling to see demand, more token supply could be detrimental to prices.

However, the 7-day moving average of mean $SHIB inflows into exchanges has dropped by 14.5% to 697.8 million tokens. This decline shows that, while exchange inflows still exist, investors depositing large amounts of the token at once have recently declined.

OI, Volume Drops, but Price Increases Instead

At the same time, market participation is also dropping considerably. Open interest has reduced by 6.1% in the past 24 hours to $57.5 million, as derivative traders pull back to observe price development. Trading volume has also declined, dropping 24% to $114.7 million.

However, the $SHIB price showed resilience. Instead of succumbing to this pressure, it rose by over 1% to remain above the crucial $0.0000060 level. This has seen it outperform assets like Bitcoin and Ethereum in the same timeframe.

Further, the token has held a key moving average, keeping hopes of a rebound alive. Despite uncertainties, Shiba Inu is trading above the 50-day MA at $0.00000591, an indicator that lies between bullish and bearish momentum. Maintaining this level supports high prices when market conditions return to the market. Analysts see a Shiba Inu uptrend targeting $0.000014 if key levels hold.

Meanwhile, funding rates stand at 0.0064%, indicating a mildly bullish market sentiment as long positions are paying fees to short holders.