549 Billion SHIB Flood Exchanges as Downtrend Tightens Grip

• 549 billion SHIB move to exchanges sparks concern
• Downtrend persists as exchange reserves climb sharply
• Technical weakness deepens amid rising on-chain supply pressure

Shiba Inu has entered another delicate phase after on-chain data revealed that approximately 549 billion SHIB tokens were transferred to cryptocurrency exchanges, a development that has intensified scrutiny around the asset’s short-term stability as exchange-held supply expands during an already fragile technical environment. Consequently, market participants are reassessing risk exposure as the increase in available tokens coincides with a broader downward price structure that has remained intact for weeks.

Price action continues to reflect a persistent pattern of lower highs and lower lows on the daily timeframe, while key moving averages slope downward and consistently act as dynamic resistance levels that cap upside momentum and limit recovery attempts. Although SHIB attempted a modest rebound in recent sessions, the advance stalled near local resistance, where sellers regained control and prevented a sustained breakout above important technical thresholds.

Source: Tradingview

Also Read: XRP Gets Major Prediction on TV: Details

Rising Exchange Reserves Add to Technical Weakness

On-chain metrics show a clear rise in exchange reserves, which typically indicates that holders are transferring tokens to platforms where liquidation becomes easier, thereby increasing the pool of tradable supply within the market. While exchange inflows alone do not automatically confirm imminent selling pressure, their scale often influences sentiment, particularly when they emerge during a broader downtrend that already reflects cautious positioning.

Additionally, liquidity conditions appear less supportive compared to earlier rally phases, when aggressive buying activity could absorb elevated inflows without triggering significant price disruption. At present, SHIB trades below major trend lines, and recent volume patterns do not demonstrate strong accumulation, which reduces the likelihood that fresh demand can immediately counterbalance the expanding supply.

Technical indicators further reinforce the cautious outlook, as downward-sloping averages continue to define resistance overhead while momentum remains subdued across multiple timeframes. Market participants are therefore monitoring nearby support zones closely, since sustained pressure from rising exchange balances could amplify volatility if those levels fail to hold under renewed selling activity.

Shiba Inu faces mounting exchange supply alongside persistent technical weakness, and until exchange inflows stabilize or price structure improves, near-term volatility is likely to remain elevated within the current market framework.

Also Read: Alert: 2,540,000,000 XRP Shifts to Binance – What Does this Mean?

The post 549 Billion SHIB Flood Exchanges as Downtrend Tightens Grip appeared first on 36Crypto.