Shiba Inu (SHIB) Token Summary

More than 1.7 trillion SHIB tokens have been moved to exchanges in the last two days.
If SHIB fails to hold support at $0.000024, it could lead to a steep decline.

At press time, Shiba Inu (SHIB) traded at $0.0000268, reflecting a 1.9% drop over the last 24 hours. Despite remaining up by 10% over the month, weak buying activity has hindered the continued upward trend.

Price Patterns and Momentum Indicators

SHIB has formed a right-angled ascending broadening wedge pattern on its one-day chart. This pattern generally indicates a bullish continuation if the price surpasses the upper trendline. However, the volume histogram bars have decreased, signifying a reduction in trading activity and insufficient buying volume needed for an upward trend.

The Money Flow Index (MFI) was recorded at 43, indicating weak momentum, with a downward trend that implies an increase in sellers entering the market. Conversely, the Chaikin Money Flow (CMF) indicated a positive value of 0.15, signifying that buying pressure still outstrips selling pressure. This scenario may lead to SHIB consolidating within the current channel as buyers and sellers vie for control.

Shiba Inu Exchange Inflows Surge

Recent data from CryptoQuant revealed a significant increase in SHIB crypto inflows to exchanges. On December 16, SHIB’s net inflows reached the highest level in nearly five months. Over the last two days, more than 1.78 trillion SHIB has been moved to exchanges. If traders consistently transfer their tokens to exchanges without sufficient demand to counteract the selling pressure, further declines for the meme coin might occur.

Key Levels to Watch

The In/Out of the Money Around Price (IOMAP) metric reveals that 43,080 addresses purchased SHIB between $0.000024 and $0.000025, establishing this zone as a strong support level, as it could appeal to traders looking for profitable entry points. In contrast, there is a supply zone at $0.000030-$0.000031 where over 3 trillion SHIB tokens were bought by 37,230 addresses. If SHIB approaches this zone, it may confront resistance as traders currently at a loss could decide to sell to limit their losses.

Long/Short Ratio Shows a Bearish Bias

Shiba Inu’s Long/Short Ratio demonstrates that bearish positions have outnumbered bullish ones over the past week. The current ratio is at 0.96, having been below 1 since December 7. The prevalence of short sellers indicates that most traders anticipate SHIB will maintain its bearish trends.