Shiba Inu Stalls at 100-Day SMA as 226B Tokens Flood Exchanges
Shiba Inu (SHIB) is facing a crucial hurdle as it struggles to break through its 100-day simple moving average, despite a significant influx of tokens onto exchanges. The token's recent price rally has stalled, and traders are weighing conflicting signals from on-chain data and market momentum.
The SHIB price has remained range-bound between the 50-day SMA near $0.00000447 and the 100-day SMA around $0.00000509 since July 27. Although the token briefly moved above the average on August 1, it closed back below it, failing to secure a daily close above the level.
On-chain data from CryptoQuant reveals that over 226 billion SHIB tokens were deposited onto exchanges on August 1, while the exchange netflow dropped by over 97% in a 24-hour period. This indicates that deposits exceeded withdrawals, suggesting traders may be preparing to sell. However, SHIB's price gained more than 7% during this period, showing strong buying demand.
Market analysts note that rising exchange balances often increase the amount of cryptocurrency available for sale, which can put pressure on prices if buying demand weakens. However, SHIB's price resilience suggests that market participants continue to purchase the token despite heavier exchange inflows.