In recent days, an astounding *1.78 trillion SHIB tokens* have been transferred to exchanges, triggering concerns about a potential bearish outlook for Shiba Inu. As of now, SHIB is trading at $0.0000268*, reflecting a decline of *1.9%* over the last *24 hours. Though the second-largest memecoin has managed a *10%* increase over the past month, a slowdown in buying activity is threatening to stifle this upward trajectory.
What’s particularly noteworthy is the formation of a right-angled ascending broadening wedge pattern on the one-day price chart for SHIB. This pattern typically signals a possible bullish continuation if the price can break above the upper trendline. Yet, the volume histogram is showing shortened bars, indicating a drop in trading activity and a lack of sufficient buying pressure to support a price surge.
The Money Flow Index (MFI) currently sits at *43, suggesting weak momentum, and it has been trending downward, which indicates an influx of sellers into the market. On a brighter note, the Chaikin Money Flow (CMF) shows a positive value of 0.15*, meaning buying pressure still exceeds selling pressure. As this tug-of-war ensues between buyers and sellers, SHIB might remain confined within its current price channel.
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Interestingly, data from CryptoQuant reveals a sharp rise in SHIB inflows to exchanges, with December 16 marking the highest net inflows in almost five months. The recent movement of *1.78 trillion SHIB* tokens amplifies concerns; if supply continues to outstrip demand, dips could become more frequent.
Key price levels to monitor include the In/Out of the Money Around Price (IOMAP) metric, which identifies a significant support level between $0.000024* and $0.000025. Here, 43,080 addresses* have purchased SHIB, likely viewing it as an appealing point of entry. Conversely, a supply zone between $0.000030* and $0.000031* holds over *3 trillion SHIB* tokens bought by *37,230 addresses*. As SHIB approaches this range, resistance may intensify if those currently at a loss opt to sell and mitigate their losses.
What’s telling is the Long/Short Ratio, which reveals a bearish sentiment dominating the trading stage. Currently standing at *0.96*, this ratio reflects that short positions have outweighed long positions for the past week, indicating a general expectation that SHIB may continue its bearish trend.
As traders ponder the future of Shiba Inu, the combination of enhanced exchange inflows and fluctuating market sentiment could play a pivotal role in determining whether SHIB can shake off these bearish signals and achieve a bullish breakout. The market is undoubtedly watching closely as these developments unfold.
