Shiba Inu Adds 157 Billion in Last 24 Hours, Hinting at End of Bullish Recovery

Just as the market was attempting a feeble recovery, Shiba Inu is under pressure as soon as a positive dynamic on the market reappears. Roughly 157 billion SHIB tokens were added to exchange flows in the last 24 hours, according to recent on-chain data. This development usually indicates increasing sell-side activity rather than accumulation.

Downtrend dominates on SHIB market

SHIB is still caught in a more general downward trend in terms of price. The move is weak, even though the asset made an effort to stabilize and create a short-term ascending structure. The price is still below important moving averages, all of which are still sloping downward, indicating that bearish control is still in place. Instead of marking the start of a long-term reversal, the current structure appears to be more of a transient consolidation phase.

The situation is made more complex by the rise in exchange reserves. Increasing reserves typically indicate that more tokens are being transferred to exchanges, frequently with the goal of selling. This suggests that market players are getting ready for distribution rather than accumulation, which is consistent with the flat-to-negative netflow behavior.

This view is not contradicted by volume. With no notable increase in buying pressure to counteract the rising supply on exchanges, trading activity is still comparatively muted.

Movement upward is suppressed

Any upward movement is likely to be fleeting and susceptible to sudden sell-offs in the absence of significant inflows of fresh capital. In technical terms, SHIB is getting close to a decision. Although recent higher lows might seem positive, they are forming within a dominant bearish trend and under strong resistance. 

The exchange data indicates that, if selling pressure keeps increasing, this structure is more likely to collapse than to resolve into a breakout.

Investors can easily understand the implications. The notion of a bullish continuation is not supported by the most recent data. Rather, it indicates that yet another attempt at recovery has reached its limit. In the absence of a discernible change in both volume and on-chain behavior, market participants should exercise caution when anticipating gains. 

The path forward is still skewed downward unless SHIB can absorb the incoming supply and recover important resistance levels.