TLDR
- 426 billion SHIB flowed into exchanges amid rising exchange reserves and weak market demand.
- SHIB continues trading below major moving averages despite the high token movement.
- Exchange reserves are increasing, showing no signs of supply tightening.
- Volume spikes remain inconsistent, and price bounces face constant selling pressure.
Shiba Inu (SHIB) recently recorded a 426 billion token exchange netflow. This event has sparked discussion among investors and traders. However, available data suggests that this volume may not result in an immediate price increase. The market remains weak, with SHIB continuing to trade under key moving averages.
The token is still in a wider downtrend, and every minor rally faces rapid sell-offs. The movement of such a large amount of SHIB may seem bullish on the surface, but deeper analysis presents a different view.
Rising Exchange Reserves Signal Caution
While 426 billion SHIB tokens moved, rising exchange reserves suggest that traders may be preparing for short-term activity rather than accumulation. When exchange reserves increase, it often indicates that holders are positioning tokens for liquidity or trading, not long-term holding.
This is critical because price boosts usually require reduced token availability on exchanges. If more tokens are available for sale, supply remains high, and prices tend to stay flat or decline. The netflow only measures the difference between tokens entering and exiting exchanges. It does not show whether the flow is bullish or bearish unless accompanied by other supporting signals.
Sell-Side Pressure Still Controls the Market
The volume spike caused by the 426 billion SHIB may include wallet migrations, internal exchange movements or short-term trading. These actions do not necessarily reflect long-term buying interest. Markets react to outcomes, not intentions. So far, SHIB has failed to reclaim broken levels despite temporary rebounds.
Price rallies have faced immediate resistance and selling pressure, with traders using upward moves to exit positions. According to trading data, SHIB remains below its 50-day and 200-day moving averages. This trend reinforces that bearish pressure continues to outweigh bullish attempts.
Market Indicators Show No Clear Bullish Signals
Technical indicators do not support a long-term reversal. The Relative Strength Index (RSI) has moved higher from its lowest range, but it has not entered a zone that suggests sustained strength.
SHIB’s inability to break above key resistance levels also means there is no confirmation of a shift in trend. As long as sellers dominate and exchange reserves keep rising, the price is unlikely to see strong upward momentum based on token movement alone.
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