- SHIB momentum fades as rising exchange supply increases profit-taking concerns among holders.
- Recent token burns continue, but weaker demand limits SHIB’s recovery potential.
- Key support sits at $0.00000521, while $0.00000602 remains crucial resistance.
Shiba Inu has started losing steam after two strong monthly gains and is now trading above the $0.00000500 mark. Rising exchange deposits could signal growing profit-taking among holders. Recent burns have reduced supply, but demand remains a major concern. SHIB also faces stronger competition from privacy-focused cryptocurrencies. Traders now need fresh buying pressure to extend the recovery. Without stronger demand, the meme coin could struggle near key resistance.
Rising Exchange Supply Raises Selling Pressure
Shiba Inu recorded another sizable token burn on Monday. The network removed 41.35 million SHIB tokens from circulation. Thursday also saw a burn involving 43.43 million tokens. These burns show continued efforts to reduce available supply. However, burns alone cannot guarantee stronger price performance. SHIB needs sustained demand to support another major advance. On-chain data now presents a more cautious picture.
Exchange-held SHIB supply has climbed to 139.59 trillion tokens. The figure stood near 137.66 trillion on July 24. Rising exchange balances often indicate greater selling potential. Investors may move tokens to exchanges when preparing to secure profits. The supply in profit also reached 7.60%, marking an eight-month high. That increase could encourage more long-term holders to sell. Many investors may now view current prices as an opportunity.
Such selling could limit SHIB’s ability to build another strong rally. The broader market also presents challenges for meme coins. Investor attention has shifted toward privacy-focused projects recently. That change could reduce speculative demand for SHIB. Meme coins often rely heavily on strong market interest and social momentum. A weaker speculative appetite could therefore pressure the current recovery.
SHIB Faces Key Technical Levels
SHIB currently remains below an ascending resistance trendline. The trendline connects highs recorded on July 26 and August 21. Resistance also sits near the May 11 high around $0.00000670. A move above that level could strengthen the bullish structure. The $0.00000521 level now provides immediate support for SHIB. This area represents the 50% Fibonacci retracement of the recent downswing.
SHIB needs to hold that level to preserve the current recovery structure. A break below support could expose the $0.00000456 Fibonacci level. Momentum indicators also show a lack of strong directional conviction. The RSI sits near 55, suggesting balanced buying and selling pressure. Meanwhile, the MACD remains nearly flat around the signal line.
Traders therefore lack a clear momentum signal from current indicators. SHIB could still recover if buyers return with stronger volume. A break above $0.00000602 would provide an important bullish signal. However, rising exchange supply remains a key risk. Profit-taking could intensify if SHIB fails to attract fresh demand.
