Shiba Inu Stalls on Rising Exchange Supply and Profit-Taking Concerns

Shiba Inu's (SHIB) recent momentum has started to fade as rising exchange supply raises profit-taking concerns among holders. The token burn continues, with 41.35 million SHIB tokens removed from circulation on Monday and another 43.43 million burned on Thursday. However, these burns alone cannot guarantee stronger price performance for SHIB.

The network's current supply in profit has reached an eight-month high of 7.60%, which could encourage more long-term holders to sell. Additionally, exchange-held SHIB supply has climbed to 139.59 trillion tokens, up from 137.66 trillion on July 24. This increase often indicates greater selling potential as investors may move tokens to exchanges when preparing to secure profits.

The broader market also presents challenges for meme coins like SHIB, with investor attention shifting toward privacy-focused projects. A weaker speculative appetite could pressure the current recovery of SHIB, which is currently trading above the $0.00000500 mark and facing key technical levels. The ascending resistance trendline sits near $0.00000670, while support lies at $0.00000521.