However, there are conflicting results from network activity. In the last 24 hours, active addresses have risen by slightly more than 1%, indicating that user engagement is not declining. This increase in activity has not, however, resulted in significant bullish momentum on the price chart. Rather, $SHIB is still having trouble below important resistance levels, such as short-term moving averages, which are serving as dynamic barriers.
Shiba Inu stays down
The bearish undertone suggested by exchange flows is strengthened by price action. With numerous attempts to break above declining resistance structures, $SHIB is still trapped in a wider downtrend. The volume expansion usually needed for a sustained breakout is absent from even the most recent consolidation patterns.
The market might be getting ready for more volatility, given the combination of growing exchange reserves and weak price strength. As more tokens become easily accessible for liquidation, downward pressure may intensify if inflows continue to approach or surpass the +200 billion threshold.
From the standpoint of an investor, this fosters caution. The predominance of exchange inflows suggests distribution rather than accumulation, even though heightened activity on the network may indicate a resurgence of interest. In the absence of robust demand, this imbalance frequently precedes times of price weakness.
Both the chart’s resistance levels and exchange reserve trends should be closely watched by traders in the near future. The trajectory of $SHIB is still precarious, and in the absence of a distinct change in momentum, the increasing supply on exchanges could serve as a trigger for additional downward pressure.
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