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- More than 1.7 trillion SHIB tokens have been moved to exchanges in the last two days.
- If SHIB fails to hold the support at $0.000024, it could lead to a steep decline.
Shiba Inu [SHIB] was trading at $0.0000268 at the time of writing, having fallen 1.9% in 24 hours.
The second-largest memecoin by market capitalization still rose 10% last month, but weak buying activity has curtailed the uptrend.
SHIB had formed a rectangular ascending, wider wedge-shaped pattern on the one-day chart. This chart pattern generally indicates a bullish continuation if the price breaks above the upper trendline.
However, the volume histogram bars have shortened, indicating reduced trading activity and a lack of adequate buying volumes to support an uptrend.
Source: trading view
The Money Flow Index (MFI) stood at 43, indicating weak momentum. This indicator has also moved down, indicating that more sellers are entering the market.
On the other hand, the Chaikin Money Flow (CMF) with a positive value of 0.15 showed that buying pressure was still greater than selling pressure.
As buyers and sellers fight for control, this could lead to SHIB consolidating within this channel.
The influx of Shiba Inu scholarships is increasing enormously
Data from CryptoQuant showed a significant increase in SHIB crypto inflows to exchanges. On December 16, SHIB’s net inflows into the stock exchanges reached the highest level in almost five months.
Moreover, more than 1.78 trillion SHIB have been moved to exchanges in the last two days.
Source: CryptoQuant
If traders continually move their tokens to exchanges and there isn’t enough demand to meet the pressure on the sell side, this could cause more dips for the meme coin.
Important levels to watch
The In/Out of the Money Around Price (IOMAP) statistic shows that 43,080 addresses purchased SHIB at a price between $0.000024 and $0.000025.
This makes this zone a strong support level as traders could consider it a good entry point due to the profitability of these addresses.
Source: IntoTheBlock
Conversely, there is a supply zone of $0.000030-$0.000031 where over 3 trillion SHIB tokens were purchased by 37,230 addresses.
As SHIB approaches this zone, it will inevitably encounter resistance as the traders currently at a loss decide to sell to minimize their losses.
Read Shiba Inu’s [SHIB] Price forecast 2024–2025
The Long/Short ratio shows a bearish bias
Shiba Inu’s Long/Short ratio showed that bearish bets outnumbered bullish bets last week. At the time of writing, this ratio stood at 0.96 and has fluctuated below 1 since December 7.
Source: Coinglass
The high number of short sellers shows that most traders expect SHIB to continue its bearish trends.
