There is a rapid increase in reserves on exchanges where Shiba Inu is traded. The fact that the total SHIB reserves are approaching 81 trillion units indicates a new period of supply pressure in the market. This rise stands out as an additional risk factor, especially in an environment where technical indicators have weakened recently.
What Does the Increase in Stock Exchange Reserves Mean?
Stock exchange reserves, one of the most watched indicators in the markets, show whether cryptocurrencies are ready to be sold in the market. While SHIB’s stock exchange reserves have exceeded the 80.5 trillion level in recent days, CryptoQuant data revealed that there has been a significant increase in inflows to the stock exchanges.
Increases in the amount of SHIB carried to the stock exchanges create the perception that the desire to sell is getting stronger instead of the current tendency to hold. There are many historical examples in the cryptocurrency community that reserve growth often increases short-term downside risk.
The increase in the amount of SHIB sent to the stock exchanges creates selling pressure on the price. Especially among large investors, the recent increase in average inflows and flows within the top 10 transactions has attracted attention. These developments; Apart from adding coins to liquidity pools, transferring them as collateral in derivative transactions or using them for in-exchange operations, it may indicate the risk of a possible decrease in prices due to excess supply.
Mini dictionary: CryptoQuant is a data analysis company that tracks transaction volumes on cryptocurrency exchanges, reserve changes and coin movements on the network. Such platforms provide investors with on-chain data, making it easier to see trends within the market.
Technical Indicators and Price Movements
The recent outlook for the SHIB price is quite weak in terms of bullishness. The token recently broke below the ascending wedge formation and is still trading below major moving averages. Although the price tested the $0.00000620 to $0.00000630 zone several times, it failed to clear the resistance there.
While the RSI (relative strength index) is currently approaching the oversold zone, there are no clear signs that buying pressure will strengthen again for the short term. This entire picture shows that price supports are in danger with the selling trend.
Psychological Threshold and Historical Trends
The level of 81 trillion units, which is considered the critical threshold in SHIB stock exchange reserves, had previously been the starting point of long horizontal movements and sometimes harsh corrections. Especially as speculative interest in the market decreases, the increase in supply makes the downward pressure on the price more pronounced.
| Indicator | April 2024 | May 2024 |
|---|---|---|
| stock market reserve | 78.2 trillion | 80.5 trillion+ |
| Price (average) | $0.00000650 | $0.00000560 |
| RSI | 45 | 37 |
During bullish periods, investor psychology often plays a much larger role in meme coins than fundamental data. If the buying momentum decreases and retail interest quickly withdraws, the current sales potential in the market may create disproportionate pressure on the price.
Critical Supports and Future Scenarios
Despite this, some market observers remain hopeful for SHIB. If the stock exchange reserves remain balanced after this point and the token can hold on in the $0.00000540-0.00000550 range, the possibility of a short-term recovery may come to the fore. Otherwise, the continuation of the current technical weakness and reserve increase increases the risk of a long-term decline period.
