As seen on Etherscan, SHIB contract addresses have sent a large inflow of tokens to Coinbase and Binance, earlier today, July 25. We have seen billions of tokens deposited between these two exchanges from July 24, which could indicate upcoming selling pressure on the token price.
Looking at the inflow to Coinbase, we can see that the highest single transaction was 14,13B SHIB coins which came seven hours and eleven minutes ago, at the time of writing.
This one transaction was close to the total of other visible transactions on the chart above that sum up to a total of 14,13B SHIB.
On the other hand, the Coinbase inflows appear to be more frequent.
The highest single transaction to Binance was 15 hours and 44 minutes ago and was 44B SHIB, while the next one was made previously, 17 hours and 14 minutes ago, and was 30,96B SHIB.
The price of SHIB started its multi-year correction on October 28, 2021, when it reached its peak of $0.000089. Since then, it has been in a clear and sharp downtrend, falling back to the levels from which it came up to the ATH, which is at $0.00000657 on June 18, 2022.
From June 18, 2022, the price entered an accumulation zone, forming a range between its lowest point of $0.0000657 and $0.000017, which is its resistance level. The price was mostly traded below the zone’s median line, with support level retested on June 14 this year.
The price is currently sitting at $0.0000078, as it has recovered since, but this price rise hasn’t shown much momentum.
As indicated by the orange lines, this whole descending price action could lead to the formation of a cup and handle pattern, which is a very usual occurrence in the cryptocurrency market. However, some altcoins never recover fully and just fade away.
Which fate will be in store for the price of Shiba Inu and the altcoin offspring of the popular meme coin Dogecoin?
Looking at the 4-hour chart, we can see a mixed outlook. Volume has diminished since July 22 and is now back at its lower levels, similar to what it was in the period between May 10 and June 5, 2023. This could indicate a diminishing interest, and with the price action moving sideways since July 15, it is not a coincidence.
The Relative Strength Index (RSI) is hovering around its 50% mark, indicating more indecision. MACD also shows low volatility and choppy signals, seemingly often switching trends.
Price action from July 22, 2023, has been moving sideways, but before that, we have seen a minor recovery of 34% which came after the accumulation zone support retest. With the previous move being a descending one which ended, there is a possibility that the next ascending one was the start of a new five-wave impulse to the upside.
If this is true, the rise from June 14 to June 22 was its wave 1, and the sideways action followed was its wave 2. Since it made a symmetrical triangle on the assumed wave 2 we could expect a breakout as its approaches its apex.
However, as in the case of symmetrical triangles, indicating equal pressure from both sides, a breakout in both directions is equally likely.
If the price breaks the triangle to the upside, further highs would be expected, potentially to the accumulation zone resistance level at $0.000017. But if the price can’t catch upward traction and instead goes below the triangles support, it could very well lead the price of SHIB to a downside breakout from the accumulation zone, which would be below $.00000657.
Shiba Inu rode off of the meme coin mania in 2021, and this cryptocurrency might never get the attention of retail investors chasing the hype. With the new inflow of tokens hitting the exchanges, volatility is expected shortly, potentially experiencing selling pressure.
These inflows should be cross-referenced with outflows, as in Netflow they could be insignificant. As of the time of writing, per Cryptoquant Shiba Inu Netflow chart , it is still negative, meaning that more SHIB is withdrawn from exchanges than deposited.
Since this is still incomplete data, the daily close will show us a more clear picture and provide insight into the amount of selling pressure the token can experience in the following days.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.