Shiba Inu (SHIB) on Edge as Exchange Inflows Surge by 228 Billion

• Shiba Inu structure stabilizes
• It is not that simple

With a sharp rise in tokens moving onto exchanges, on-chain metrics indicate that Shiba Inu has once again entered a vulnerable phase. One of the most noticeable increases in recent weeks was the surge in exchange inflows over the past day, which reached about 228 billion SHIB. 

Shiba Inu structure stabilizes

Because exchange deposits usually occur before increased selling pressure, particularly when price action is still weak, such movements frequently garner attention. SHIB is still trading within a larger downtrend structure on the price chart that has been there for months. 

SHIB/USDT Chart by TradingView

Key moving averages are still sloping downward, and the asset is having difficulty regaining them despite a slight recovery from recent lows. Buyers still lack the conviction to push prices through resistance zones, as evidenced by the recent hesitancy following the rebound toward the $0.0000067 region.

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Another degree of caution is added by the spike in exchange inflows. It is usually a sign that holders may be getting ready to sell or realign, when significant amounts of tokens enter exchanges. When combined with SHIB’s incapacity to sustain recovery rallies, this indicator shows that, if sellers capitalize on the current price stability, downward pressure may return rapidly.

It is not that simple

But things are not totally one-sided. After a sharp decline earlier in February, price action over the last few sessions indicates some attempts at stabilization. Instead of continuing to decline straight, SHIB is trying to establish a small base as volatility has somewhat cooled. Instead of an instant breakdown, there may be a brief period of consolidation if buyers are able to hold current levels and absorb the incoming supply.

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SHIB may be forced back toward recent lows by persistent exchange deposits, but a drop in inflow activity may enable the price to try another recovery push.

As of right now, the inflow surge serves as a warning indicator rather than proof of an impending collapse. SHIB is still at a crossroads, and future sessions will probably decide whether stabilization leads to recovery or just serves as a prelude to a subsequent leg lower.

Source: https://u.today/shiba-inu-shib-on-edge-as-exchange-inflows-surge-by-228-billion