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In a tumultuous turn for Shiba Inu (SHIB), over 1.78 trillion tokens have recently been transferred to exchanges, signaling potential volatility ahead.
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This surge in activity prompts concerns about SHIB’s price stability, especially if it fails to maintain critical support levels.
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“SHIB is experiencing significant sell pressure, and if it doesn’t hold support at $0.000024, a steep decline could be imminent,” said an analyst from COINOTAG.
This article explores the recent surge in Shiba Inu token transfers, examining market dynamics and support levels that could influence future price movements.
Recent SHIB Token Movements Indicate Market Pressure
In the past few days, Shiba Inu has experienced an unprecedented influx of tokens into exchanges, with more than 1.7 trillion SHIB moved in just 48 hours. This influx raises concerns about market sentiment and future price action. At the time of writing, SHIB was trading at $0.0000268, reflecting a 1.9% decline over the past 24 hours. Despite this, SHIB remains up by 10% in monthly terms, indicating underlying purchasing interest.
Market Sentiment and Trading Patterns
The current trading environment presents a mixed picture for SHIB holders. A right-angled ascending broadening wedge pattern appeared on its one-day chart, which typically suggests a bullish continuation if the price exceeds the upper trendline. Contrarily, shrinking volume histogram bars indicate a reduction in trading activity, signaling weak buying momentum and challenges for sustaining an uptrend.
Source: Trading View
The Money Flow Index (MFI) showed a value of 43, demonstrating lackluster momentum as it trends downward, indicating increased selling activity in the market. Contrastingly, the Chaikin Money Flow (CMF) remains at a positive value of 0.15, suggesting that buying pressure still outweighs selling, which adds an element of complexity to current market dynamics.
Shiba Inu Exchange Inflows Spike Significantly
Data from CryptoQuant reveals a notable spike in Shiba Inu’s inflows to exchanges, peaking on December 16th, marking the highest net inflows in nearly five months. This rapid increase calls attention to the potential market implications as traders move vast quantities to exchanges.
The influx of over 1.78 trillion SHIB tokens within two days could precipitate further market corrections if demand fails to match the sell-side pressure.
Source: CryptoQuant
Key Support and Resistance Levels for SHIB Traders
According to the In/Out of the Money Around Price (IOMAP) analysis, 43,080 addresses are holding SHIB purchased between $0.000024 and $0.000025, establishing a robust support level influenced by profitability and trader sentiment.
Source: IntoTheBlock
Conversely, a significant supply zone exists at $0.000030-$0.000031, which has seen over 3 trillion SHIB purchased by 37,230 addresses. This could act as resistance, especially if traders look to recover losses by selling into this area.
Stay informed with Shiba Inu’s price prediction for 2024-2025.
Market Sentiment Reveals Bearish Trends
The Long/Short Ratio for SHIB reflects a bearish bias, with short positions outnumbering long positions significantly for the past week. Currently, the ratio sits at 0.96, indicating that a majority of traders are anticipating continued bearish movements.
Source: Coinglass
The ongoing trend in short selling suggests a cautious outlook among traders, reflecting widespread expectations of further declines in SHIB’s price.
Conclusion
As Shiba Inu grapples with significant sell pressure, the key levels to monitor are crucial for traders aiming to navigate the current market landscape effectively. The influx of tokens to exchanges, combined with bearish sentiment, underlines the necessity for vigilance among SHIB holders. Current market dynamics suggest that without an uptick in buying activity, SHIB may face continued downturns.
