"552 Billion SHIB Exits Exchanges"...Shiba Inu, Selling Pressure Wanes and Breakthrough Signal

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) has entered a transitional phase after a prolonged decline, with a massive outflow of tokens from exchanges raising the possibility of easing selling pressure.

U.Today reported on May 5 (local time) that Shiba Inu is in a transitional phase where its price structure and on-chain flows have begun to align after a long downtrend. Chart analysis shows that Shiba Inu has been forming a structure of gradually higher lows after months of downward movement and is compressing below the downward resistance line.

The most notable change is the exchange flow. According to U.Today, a large outflow of 552 billion SHIB recently occurred. This is part of a trend of decreasing exchange balances that has continued for several months. The analysis suggests that as hundreds of billions of SHIB repeatedly move off trading platforms, the supply available for immediate selling is decreasing. Generally, such outflows indicate that holders are focusing on holding or rebalancing their positions rather than preparing to sell.

Shiba Inu has been under strong pressure for a long time. It has struggled to recover key trend lines, and the 100-day exponential moving average (EMA) has consistently acted as a resistance level, capping the upside. However, recent price action repeatedly testing this zone suggests that the strength of this resistance is weakening. U.Today analyzed that the more times a resistance level is tested, the higher the probability of a breakthrough.

In the current structure, an ascending triangle pattern is also observed. This is interpreted as a pattern where the price gradually compresses into a narrower range, increasing breakthrough pressure. At the same time, decreasing inflows to exchanges are reducing the likelihood of a flood of selling pressure entering the market. U.Today reported that with one of the main causes of selling pressure weakening, price stabilization has become possible.

If Shiba Inu breaks above the 100-day EMA and sustains itself above it, the market could enter a recovery phase. In this scenario, large exchange outflows and reduced selling pressure could support a move towards higher resistance levels. Conversely, if it fails to break through, the compression within the current range could continue, delaying a full trend reversal.

While Shiba Inu has not yet entered a strong uptrend, it is also not in a free-fall phase like in the past. The 552 billion SHIB outflow is a signal that holder behavior is changing. As the current compression phase resolves, the potential for increased volatility is growing, and the direction will likely be determined by how the price reacts to the weakened 100-day EMA resistance.

*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.*