Shiba Inu Breaks Above Key Resistance, But Risks Lurk Amid Soaring Exchange Supplies

Shiba Inu (SHIB) has made significant gains in recent days, with nearly half a trillion tokens being traded in the past 24 hours. The token's price has surged to around $0.00000609, breaking above its long-term moving average of $0.00000560.

This technical breakthrough comes after SHIB established a sequence of higher lows since its June bottom at $0.00000410. However, the rally may face significant selling pressure as rising exchange reserves and a positive netflow of nearly 200 billion SHIB put the breakout under immediate pressure.

The token-denominated reserve has increased by 0.22% in the last 24 hours to approximately 87.7 trillion SHIB. Meanwhile, total exchange inflows stand at approximately 477.5 billion SHIB, against roughly 286.4 billion SHIB in outflows, resulting in a positive netflow of roughly 191.1 billion SHIB.

Although the technical structure remains strong, investors should be cautious as the expanding exchange supply may put pressure on the breakout. If buyers fail to absorb the additional tokens, a return below $0.00000560 would raise doubts about the breakout, while losing $0.00000520-$0.00000500 would seriously damage the current recovery structure.