Shiba Inu, Selling Volume 'Plummets'...May Rebound Scenario Becoming a Reality?

▲ Shiba Inu (SHIB)

The inflow of Shiba Inu (SHIB) to exchanges has decreased by 47%. Based on this, it has ended its long-term downward trend and begun to solidify its bottom and prepare for a rebound.

According to U.Today, a cryptocurrency specialized media outlet, on May 3 (local time), Shiba Inu's 7-day moving average inflow to exchanges decreased by approximately 47%, indicating a noticeable easing of selling pressure. The phenomenon of fewer tokens being deposited into exchanges means that market participants have stopped large-scale sell-offs and have switched to a holding phase. In particular, with net inflow remaining negative (more tokens leaving exchanges than entering), a positive change in the supply structure is emerging.

According to technical indicators, Shiba Inu has been gradually raising its lows and maintaining a narrow ascending channel since forming a bottom in February. The current price is gently rising towards the 100-day exponential moving average, which has acted as a strong resistance level in the long-term downtrend. However, the 50-day and 100-day exponential moving averages are still above the price, and the distance to the 200-day exponential moving average is also significant, meaning a macroscopic trend reversal is not yet fully confirmed. TradingView chart analysis shows that Shiba Inu is attempting a technical rebound, taking advantage of the weakening influence of sellers.

A cautious view also suggests that a decrease in selling pressure does not immediately lead to a sharp price increase. For a true breakout, an explosive expansion of buying power is essential, but current trading volume remains relatively stagnant. This indicates that buyers are observing market conditions and approaching cautiously rather than entering aggressively. To secure upward momentum, overwhelming buying capital inflow is needed to break through the upper boundary of the ascending channel.

In the future, Shiba Inu is expected to test the resistance zone where the upper boundary of the ascending channel and the 100-day exponential moving average converge. If it breaks through this area and establishes itself stably, it could extend its upward movement towards the 200-day exponential moving average, where the next resistance cluster is formed. Conversely, if it fails to break through the resistance, there is a possibility of a prolonged sideways movement or a slight retreat to the lower trendline of the channel. The market is currently in a transitional phase where sellers are losing power and buyers are exploring dominance.

Shiba Inu's on-chain indicators show that the risk of a decline has decreased, but a cautious approach is still needed until buyers fully take control of the market. Investors are focused on risk management, tracking changes in trading volume and whether key exponential moving averages are broken in real-time. Global virtual asset markets are keenly watching whether the easing of selling pressure can be a signal for a long-term trend reversal, paving the way towards previous highs.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*