Shiba Inu, Exchange Deposits Plummet...Is a Supply Shock Rally Coming Soon?

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) inflows to exchanges have sharply decreased, indicating that market selling pressure has virtually bottomed out.

According to U.Today, a virtual asset media outlet, on April 27 (local time), the amount of Shiba Inu flowing into exchanges over the past 24 hours was only 43 billion SHIB. This is an exceptionally low level compared to past large-scale inflows, which often reached hundreds of billions. The decrease in exchange deposits generally suggests that investors are more inclined to hold their assets in personal wallets rather than sell them. With the exhaustion of sell-side liquidity, an environment has been created where even a small buying spree can lead to a significant price surge.

On-chain data analysis did not detect aggressive position shifts by large investors. The minimal fluctuation in exchange balances indicates that whales are maintaining a wait-and-see attitude at current price levels. The market has entered a transitional phase where buying and selling pressures are tightly balanced, determining the market's direction. The trend of decreasing inflows to exchanges is interpreted as an indicator that sellers are beginning to lose momentum. Market participants are perceiving this as a precursor to a potential supply squeeze.

Currently, the price of Shiba Inu is consolidating and forming a base within a narrow ascending channel after a long-term decline. The Relative Strength Index (RSI), a technical indicator, remains at a neutral level, indicating a balance between buying and selling. However, major moving averages are still positioned above the price, meaning that a larger trading volume is needed to confirm a trend reversal. The current gentle upward trend is considered a technical adjustment phase after a significant decline. The accompanying rise in trading volume is expected to be a key variable for future price breakouts.

Attempts to break through key resistance levels on the Shiba Inu price chart continue. The slowdown in exchange inflows acts as a tangible indicator that reduces short-term downward price pressure. However, a full-fledged rally requires overall market liquidity recovery and strong buying conviction. Market participants are responding cautiously, observing the continuous decrease in exchange balances and the robustness of price support levels. Whether this supply-demand imbalance will lead to a real price surge depends on the trading volume at the time of breaking the next resistance level.

*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.*