283,848,317,954 Shiba Inu (SHIB) in 24 Hours: Bull Run Might End Here

Although Shiba Inu has recovered well over the last week, the most recent market and on-chain data indicate that the bullish momentum may be waning. Nearly 284 billion SHIB tokens moved between exchanges in the past day, according to CryptoQuant, suggesting that holders might be getting ready to cash out rather than continue to accumulate.

Exchange reserves rising

Historically, rising exchange reserves have frequently preceded sell pressure, making this crucial. On the other hand, tokens moving back into exchanges indicate that traders are preparing to sell, while tokens moving off exchanges typically indicate accumulation or long-term holding. For those looking for a long-term breakout, SHIB’s rising exchange reserves as its price tests resistance levels are a warning sign.

The long-standing descending trendline that has capped price rallies since mid-2023 is once again in front of SHIB from a technical perspective. The coin is having trouble in the $0.000012-$0.000013 range, where the 200-day and 50-day EMAs have converged, adding to the resistance. The RSI is currently in the neutral zone, but the recent sharp increase in reserves makes it less likely that the breakout will continue.

Shiba Inu’s upward spike

Another indicator of declining conviction is the volume profile. SHIB experienced a brief upward spike, but the volume of follow-through purchases has been comparatively low. This discrepancy between low bullish volume and increasing exchange reserves raises the possibility that short-term traders and whales are ahead of retail expectations for a new surge.

A significant portion of the recent rally could be erased if selling picks up speed and SHIB drops back toward the $0.000011 support zone. In another case, a confirmed break above $0.0000136 with diminishing reserves might rekindle hope.

To put it briefly, SHIB’s bull run is currently up against a crucial test. According to the data, liquidity is returning to exchanges, and the rally may not last long if buyers do not act decisively. Traders should exercise caution because what appears to be the start of a breakout could just as easily be a bull trap.