Shiba Inu, Supply Shock on the Brink of Exchange Reserve Collapse... Explosion if the 80 Trillion SHIB Line Breaks?

▲ Shiba Inu (SHIB)/ChatGPT generated image

As Shiba Inu (SHIB) exchange reserves approach the collapse of the long-held 80 trillion SHIB line, the easing of supply pressure has emerged as a key variable in the price rebound narrative.

According to U.Today, a cryptocurrency specialized media outlet, on May 31 (local time), SHIB exchange reserves on chain data are currently estimated at approximately 80.03 trillion SHIB. U.Today reported that this figure has served as a structural and psychological benchmark for Shiba Inu for a long time, and if the current trend continues, exchange reserves could fall below 80 trillion SHIB for the first time.

Exchange reserves refer to the amount of cryptocurrency that investors can immediately buy and sell on trading platforms. U.Today explained that a decrease in reserves is generally interpreted as a sign that investors are moving assets to personal wallets rather than immediately selling them. It is analyzed that if demand is maintained or increases while liquid supply decreases, an environment favorable for price increases can be created.

The 80 trillion SHIB line is drawing attention because it has been a long-maintained benchmark in Shiba Inu's recent history. As a large volume of SHIB accumulated on exchanges for a long period, potential selling pressure remained in the market. U.Today pointed out that while recent net inflows and outflows on exchanges are largely balanced, the overall trend indicates a gradual decrease in tradable supply.

The technical trend has not yet escaped pressure. Shiba Inu remains below key moving averages within a bearish structure formed above the 100-day and 200-day moving averages. However, the price is attempting to stabilize near a key trend line that has shown support multiple times in recent months.

The Relative Strength Index (RSI) has moved into the oversold zone, suggesting a potential weakening of selling momentum. U.Today reported that Shiba Inu has often shown strong rebounds in the past when oversold conditions coincided with improving on-chain indicators. If exchange reserves definitively fall below 80 trillion SHIB, it would signify a historic reduction in circulating supply and could strengthen Shiba Inu's long-term bullish narrative.

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