"552 Billion SHIB Leave Exchanges"...Shiba Inu, Selling Pressure Eases and Breakout Signal

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) has entered a transition phase after a prolonged decline, with a massive outflow of tokens from exchanges raising the possibility of easing selling pressure.

U.Today reported on May 5 (local time) that Shiba Inu is in a transitional phase where its price structure and on-chain flows are beginning to align after a long downtrend. Chart-wise, Shiba Inu has been forming a structure of gradually higher lows after months of downward movement and appears to be consolidating below a downward resistance line.

The most notable change is in exchange flows. According to U.Today, a massive outflow of 552 billion SHIB recently occurred. This is part of a trend of decreasing exchange balances over the past few months. The analysis suggests that as hundreds of billions of SHIB repeatedly move off trading platforms, the supply available for immediate selling is decreasing. Generally, such outflows indicate that holders are opting to hold or rebalance their positions rather than prepare to sell.

Shiba Inu has been under strong pressure for a long time. It struggled to reclaim key trend lines, and the 100-day exponential moving average consistently acted as a resistance level, capping its upside. However, recent repeated tests of this zone by the price suggest that the strength of this resistance is weakening. U.Today analyzed that the more a resistance line is tested, the higher the probability of a breakout.

In the current structure, an ascending triangle pattern is also observed. This is interpreted as a pattern where the price gradually compresses into a narrower range, increasing breakout pressure. Simultaneously, decreasing inflows to exchanges reduce the likelihood of a surge of selling pressure hitting the market. U.Today reported that with one of the main causes of selling pressure weakening, price stabilization has become possible.

If Shiba Inu breaks above the 100-day exponential moving average and sustains itself above it, the market could enter a recovery phase. In this scenario, large exchange outflows and reduced selling pressure could support a move towards higher resistance zones. Conversely, if it fails to break out, the consolidation within the current range could continue, delaying a full trend reversal.

Shiba Inu has not yet entered a strong uptrend, but it is also not in a free-fall phase like in the past. The 552 billion SHIB outflow is a signal that holder behavior is changing. As the current consolidation phase resolves, the potential for increased volatility is growing, and the direction will likely be determined by how the price reacts to the weakened 100-day exponential moving average resistance.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*