- Shiba Inu’s exchange reserves have dropped to 998 million USD, indicating less sell pressure but no immediate buying interest.
- SHIB is testing key support levels at $0.0000117, with a bearish outlook driven by low trading volume and weak price action.
- The absence of new demand makes SHIB susceptible to low-volume volatility, heightening the chances of further price declines.
Shiba Inu (SHIB) has seen its exchange reserves dip to a new low of approximately 998 million USD. This marks a continuation of a trend that points to a shift in investor behavior. A significant amount of SHIB is moving away from centralized exchanges, which historically signals reduced sell pressure and potential accumulation in the long term. Despite this, the token’s price continues to face headwinds in the short term.
Since the beginning of September, SHIB’s exchange reserves have been steadily depleting, indicating that tokens are being withdrawn from exchanges. This trend has coincided with a decline in SHIB’s price, which now hovers around $0.0000117. The price has been unable to break above $0.0000140 in recent attempts and is currently testing critical support levels within a symmetrical triangle structure. This pattern has raised concerns about further price declines, especially with the token trading below its moving averages.
Technical Indicators Reflect Bearish Sentiment
The Relative Strength Index (RSI) for SHIB is currently at 37, indicating that the token is oversold. This suggests that there may be space for a technical recovery, though the overall sentiment remains bearish. The combination of declining reserves and weak price performance suggests that market participants are not showing significant interest in trading SHIB in the short term. Consequently, SHIB faces the risk of low-volume volatility, where price swings could be more pronounced due to a lack of active traders.
The drop in exchange reserves could be interpreted as a sign that investors are holding onto their SHIB tokens, possibly moving them to decentralized wallets or cold storage. While this reduces immediate selling pressure, it also points to the absence of fresh demand for the token. In previous instances, SHIB’s price saw strong recoveries after reserves dropped significantly, but such recoveries typically followed the return of buying pressure. Currently, there is no indication that such buying pressure is returning.
The Path Forward for Shiba Inu
To avoid further declines, SHIB must maintain support above $0.0000110. A push above $0.0000130 would be necessary for the token to regain bullish momentum and break free from its current consolidation phase. Until then, SHIB remains vulnerable to further price erosion as it awaits a catalyst to spark renewed interest from buyers.
