Shiba Inu Experiences Dramatic Increase in Exchange Inflows – Risk or Opportunity?

Shiba Inu Experiences Dramatic Increase in Exchange Inflows – Risk or Opportunity?

Shiba Inu (SHIB) is currently making waves in the cryptocurrency market after the token recorded a dramatic increase in exchange inflows. According to current analyses u.today an increase of 335% is observed in the seven-day moving average. This development could significantly impact SHIB’s short-term price movement.

Such an increase in exchange inflows usually indicates that investors are tending to transfer their holdings from private wallets to exchanges, which is often associated with selling pressure. However, despite this potential change, the price of SHIB remains stable at around $0.0000102. What is particularly notable is that the token has recovered from a local low around $0.0000090 and has managed to regain the psychologically important level of $0.0000100.

Technical analysis and market forecasts

Technical analysis shows that a breakout above $0.0000112 could confirm a bullish reversal. The Relative Strength Index (RSI) below 40 suggests that the token may be oversold. In the last two sessions, trading volume has increased slightly, indicating increasing market activity.

One potential scenario is that SHIB could rise towards $0.0000115 to $0.0000120 should a short squeeze occur. Alternatively, however, the token could find support around $0.0000090 if panic selling occurs. The increase in exchange inflows is therefore an important signal for traders to indicate potential sell waves or significant price movements.

It is recommended to closely monitor market reactions to increased on-chain activity to make informed trading decisions. The coming days could be crucial for the price development of Shiba Inu.