147B SHIB Flood Exchanges, What Does This Mean for The Token

Shiba Inu (SHIB) is under strong selling pressure as more than 147 billion tokens were moved to exchanges within a single day. 

These transfers, according to data from Cryptoquant, occurred across different trading platforms across the world, indicating that many holders are preparing to sell, which can push prices down.

At the time of writing, the token is trading at $0.000005903, down 0.63% in the past 24 hours. It has been consolidating between $0.000006094 and $0.000005772 in the past week, with no clear direction.

SHIB’s previous attempt at a bullish breakout

In mid-March, the token showed brief signs of recovery, which gave lots of traders hope. The price action at the time formed a golden cross pattern on the three-hour chart, a technical signal where a short-term moving average crosses above a long-term moving average, usually suggesting that prices might go up.

This followed a breakout from a bullish flag pattern on the daily timeframe. The market reacted positively at first, but the effect did not last.

Shortly after, two death cross signals formed on the same chart, which occurs when a short-term moving average crosses below a long-term moving average and generally indicates continued downward pressure.

Declining trading volume adds to downtrend sentiment

Trading activity in the last 24 hours has dropped by 29% to about $69.18 million, which means fewer people are buying, and this can make it harder for the price to see any price gains.

A further look at the chart shows a small upward trend forming, but this trend is weak because it does not have enough support from trading volume. At the moment, SHIB is in range between a key resistance level at $0.0000065 and a support level at $0.00000508. 

In addition, current market sentiment points to more selling than buying. Meanwhile, the Relative Strength Index (RSI) is currently at 50.09, which means that the market is neutral with no momentum from either buyers or sellers.

Moreover, the broader cryptomarket is experiencing low volatility, and trading activity has been subdued, partly due to a recent holiday weekend. Bitcoin, the largest cryptocurrency by market cap, is holding at $67,308, with a 38% drop in trading activity to about $16.09 billion.

In summary, the transfer of 147 billion SHIB tokens to exchanges has reinforced existing selling pressure. The price attempt to break out from consolidation keeps failing, and the overall trend remains downward.

Unless more buyers enter the market or key resistance levels are broken, SHIB is likely to stay under pressure or move sideways for some time.

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