Shiba Inu, Exchange Deposits Plummet...Is a Supply Shock Rally Coming Soon?

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) exchange inflows have sharply decreased, indicating that market selling pressure has virtually bottomed out.

According to U.Today, a virtual asset media outlet, on April 27 (local time), only 43 billion SHIB Shiba Inu entered exchanges in the past 24 hours. This is an exceptionally low level compared to the massive inflows of hundreds of billions seen in the past. A decrease in exchange deposits generally suggests that investors are more inclined to hold assets in their personal wallets rather than sell them. As the supply of assets waiting to be sold dwindles, an environment is created where prices can surge significantly even with small buying pressure.

On-chain data analysis revealed no aggressive position shifts by large investors. The minimal fluctuation in exchange balances indicates that whales are maintaining a wait-and-see attitude at current price levels. The market has entered a transitional phase where buying and selling pressures are tightly balanced, determining its direction. The trend of decreasing inflows to exchanges is interpreted as an indicator that sellers are beginning to lose strength. Market participants are perceiving this as a precursor to a potential supply squeeze.

Currently, Shiba Inu's price is consolidating within a narrow ascending channel after a long-term decline, forming a base. The Relative Strength Index (RSI), a technical indicator, remains at a neutral level, indicating a balance between buying and selling. However, major moving averages are still positioned above the price, suggesting that a larger trading volume is needed to confirm a trend reversal. The current gradual upward movement is considered a technical adjustment phase after a significant downturn. Whether trading volume accompanies this rise is expected to be a key variable for future price breakouts.

Attempts to break through major resistance levels on the Shiba Inu price chart are ongoing. The slowdown in exchange inflows acts as a practical indicator, reducing short-term downward price pressure. However, a full-fledged rally requires a recovery in overall market liquidity and strong buying conviction. Market participants are responding cautiously, observing the continuous decrease in exchange balances and the robustness of price support levels. Whether this supply-demand imbalance will lead to a significant price surge depends on the trading volume at the next resistance breakthrough.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*