Shiba inu sees over 4 billion tokens move to exchanges

Shiba Inu has shown signs of recovery from its recent lows following a strong selling wave. However, on-chain data suggests that large investor activity may pose a significant obstacle to any further upward movement. More than 4 billion SHIB tokens have been transferred into exchanges in the last 24 hours.

Major wallet movements could add pressure

As the market seeks stability, the movement of a high volume of SHIB to exchanges has fueled concerns about renewed selling pressure. While such inflows do not always mean immediate sales, they are often interpreted as investors preparing liquidity for potential exits. This situation has the potential to dampen price momentum, especially at a time when SHIB has struggled to regain traction.

The timing is also noteworthy. The recent sharp correction in SHIB dragged the token down to its lowest levels in months. The drop followed a break below the ascending wedge pattern that had supported prices through most of the spring, leading to accelerated selling until buyers re-entered around the $0.0000045 mark.

Technical rebound lacks strong fundamentals

After hitting its latest bottom, SHIB managed to recoup a portion of its losses. The Relative Strength Index (RSI), a widely used technical tool, recovered noticeably from the oversold region, with the price approaching its 50-day moving average once again. The RSI measures the speed and direction of recent price changes, with readings below 30 considered oversold and above 70 seen as overbought.

Mini glossary: RSI is a technical indicator measuring the speed and direction of price movement. Moving averages reflect the average price over a set period and are used as support or resistance levels.

Such rebound rallies often attract speculative traders looking for short-term gains, but the large transfers from major wallets to exchanges add further complexity. These movements increase the available supply in the market and can absorb incoming buy demand, making it more difficult for prices to launch a stronger upward trend.

Resistance levels monitored closely

SHIB continues to trade below its 50, 100, and 200-day moving averages, demonstrating that sellers still have the upper hand in the broader market setup. Despite the recent price bounce, no clear evidence of a sustained technical recovery has emerged, and overcoming key resistance thresholds will be crucial for any lasting shift in momentum.

Volume data further supports a cautious stance. The selling volume during the recent downturn has yet to be matched by equivalent buying activity in the rebound phase. For buyers to weaken the prevailing downtrend, they would need to reclaim resistance near the 50 and 100-day moving averages.

If inflows into exchanges remain high, breaking through these resistance zones could become even more challenging. This suggests SHIB’s recent recovery remains vulnerable to renewed selling pressure from major holders.

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