Shiba Inu Exchange Inflows Fall 47%, Easing Selling Pressure and Bolstering Rebound Case
Summary
- Shiba Inu (SHIB)’s exchange inflows have fallen about 47%% on a seven-day moving average basis, signaling an easing in selling pressure.
- Shiba Inu has formed a gradual upward channel by posting higher lows since its February low, and is now testing a resistance zone near the 100-day exponential moving average (EMA).
- A break above the upper end of the rising channel and the 100-day exponential moving average could open the way for further gains toward the 200-day exponential moving average, though failure to break out could lead to sideways trading or a pullback toward the lower end of the channel.
Forecast Trend Report by Period
Selling pressure on Shiba Inu is easing as exchange inflows into the token have dropped sharply.
Crypto outlet U.Today reported on May 4 that Shiba Inu’s seven-day average exchange inflows fell about 47%. Fewer tokens moving onto exchanges suggest investors are opting to hold rather than sell. Exchange netflows have also remained negative, signaling a structural easing in supply pressure.
On the technical side, the token is continuing its rebound attempt. Since its February low, Shiba Inu has posted higher lows and formed a gradual upward channel. The price has now moved into a test of the 100-day exponential moving average, a level that has served as resistance during the longer-term downtrend.
Still, the move is not yet viewed as a confirmed trend reversal. The 50-day and 100-day exponential moving averages remain above the current price, and the gap with the 200-day exponential moving average is still wide. That leaves open the possibility of a short-term bounce, but a shift into a medium- to long-term uptrend requires further confirmation.
Fresh buying remains the key variable. Trading volume has stayed flat even as selling pressure has eased, suggesting investors are maintaining a wait-and-see stance rather than turning into aggressive buyers.
Shiba Inu is set to test a resistance zone where the upper end of the rising channel overlaps with the 100-day exponential moving average. If the token breaks above that area and holds there, the next resistance level could come at the 200-day exponential moving average. If the breakout fails, the token could remain range-bound or retreat toward the lower end of the channel.
Meanwhile, on-chain indicators suggest downside risk has eased somewhat. But a sustained trend reversal will require stronger volume and firmer buying interest. Market participants are watching whether Shiba Inu can clear key moving averages and whether trading volume starts to pick up.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
