500 Billion SHIB Moves to Exchanges in 24 Hours: Is Shiba Inu Recovery at Risk?

Shiba Inu ($SHIB) September recovery is starting to weaken as more $SHIB tokens are moving onto crypto exchanges, signaling that some holders may be preparing to sell.

The coin has gained 12% over the past month, trading at $0.000005788. Meanwhile, recent on-chain data shows that average $SHIB deposits to exchanges increased by 1.92% over 24 hours to about 500.12 billion tokens. The 10 largest deposits totaled around 13.91 billion $SHIB, while total deposits rose by 2.58%.

This comes after $SHIB failed to stay above $0.0000060, raising questions about whether its recent recovery can continue.

However, higher exchange deposits do not automatically mean a major sell-off is coming. $SHIB withdrawals from exchanges are also increasing, and overall netflow remains negative. This means more $SHIB is leaving exchanges than entering them.

Why Exchange Inflows Matter

When tokens are moved to exchanges, they become easier to trade or sell. As a result, rising exchange deposits can sometimes signal increased selling pressure.

The rise in $SHIB deposits suggests more tokens are moving to trading platforms. The 10 largest deposits, totaling about 13.91 billion $SHIB, also show that some large transfers are taking place.

Still, these deposits do not necessarily mean investors are selling. $SHIB can also be moved to exchanges for trading, liquidity, or other reasons.

$SHIB’s exchange withdrawals provide a different signal. Average withdrawals increased by 2.22%, while the 10 largest withdrawals rose by 2.58%.

Since netflow remains negative, more $SHIB is still leaving exchanges than entering them. So, despite the rise in deposits, there is not yet clear evidence that investors are heavily moving $SHIB onto exchanges to sell.

The main concern is that $SHIB’s price is weakening while these mixed exchange flows are taking place.

$SHIB Returns to Its 200-Day Moving Average

$SHIB is trading around $0.000005782 after once again failing to break above the $0.0000060–$0.0000062 range.

The drop has brought $SHIB back to its 200-day moving average, which is around $0.0000053–$0.0000058. This level is important because $SHIB recently moved above it for the first time in months.

The current decline could simply be a test of this breakout rather than a full reversal, as long as buyers defend the $0.0000053–$0.0000058 area.

However, the recovery has not been confirmed yet. $SHIB needs to move back above $0.0000059 before it can make another attempt at $0.0000061–$0.0000062. A sustained move above that level would show that buyers are becoming stronger again.

On the other hand, falling below $0.0000053 would weaken the recovery and could lead to further declines.

What If $SHIB Falls Below Support?

If $SHIB breaks below its 200-day moving average, the next important support area could be around $0.0000051–$0.0000052. Falling below the 200-day moving average would put $SHIB back below an important long-term indicator and could increase selling pressure.

Momentum has also weakened. Recent red candles show that buyers are struggling to keep $SHIB above $0.0000060.

The RSI has also fallen back toward the mid-50s after approaching overbought levels during the previous rally. Although the RSI is still above 50, the decline shows that $SHIB’s recent momentum is cooling.

$SHIB Still Needs Buyers to Break Higher

The latest exchange data does not necessarily mean a major sell-off is coming. More $SHIB is still leaving exchanges than entering them, which provides a positive counterpoint to the rising deposits.

Still, rising exchange deposits, repeated rejection near $0.0000060, and the return to the 200-day moving average have made $SHIB’s recovery more uncertain.

Until $SHIB moves back above these levels, its September recovery remains vulnerable, and a sustained move above $0.0000062 remains uncertain.

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