Shiba Inu (SHIB) on the Verge of Breaking 81 Trillion Threshold

Following weeks of comparatively stable exchange balances, Shiba Inu is once again getting close to a crucial on-chain threshold. Currently trading close to $0.0000058, the meme-based asset is making an effort to stabilize following a protracted decline that drove the token toward multi-month lows earlier this year.

Recovery path is not simple

Although there are early indications of consolidation in price action, underlying exchange metrics are starting to move in a way that could make any future recovery more difficult.

The market is currently getting close to the 81 trillion token threshold, and one of the most significant developments is the return of exchange inflows, which have driven the total amount of SHIB held on trading platforms back toward the 80 trillion token mark.

The entire quantity of a cryptocurrency that is accessible on centralized exchanges is represented by exchange reserves. An increase in these balances usually means that more holders are moving assets to exchanges, usually in preparation for a sale or to boost liquidity.

This is a particularly significant trend for Shiba Inu. Declining exchange reserves frequently helped maintain price stability during earlier stages of recovery by lessening the immediate pressure to sell.

Inflows ruined picture

The recent resurgence of inflows, however, raises the possibility that some holders are preparing to pull out of the market in the event that price momentum declines once more.

SHIB’s chart continues to show a more general bearish structure from a technical perspective. The 26-day and 50-day exponential moving averages, which continue to function as resistance levels, are among the important moving averages that the token is still below. The market is trying to establish a base, as evidenced by the recent price movement, which shows a small consolidation pattern forming after a string of lower highs.

The token may start to form a more sustainable recovery trend if buyers are able to push SHIB above neighboring resistance zones and recover these moving averages. Nevertheless, investors cannot overlook the risk factor brought about by the growing exchange reserves.

Higher volatility frequently comes after increased exchange liquidity. Any attempt at recovery could quickly stall if a significant amount of those newly transferred tokens enter the market as sell orders.