In terms of price performance, SHIB remains structurally weak. The 50 and 100 EMAs serve as firm overhead resistance, and the asset is still stuck below its major moving averages. Sharp but superficial recent upside attempts were quickly rejected. When liquidity is used to close positions rather than create new ones, this type of behavior is common
SHIB/USDT Chart by TradingViewAlthough the RSI recovered into neutral territory, it is not supported by any long-term momentum. There are volume spikes, but they too closely coincide with sell-side activity. That image is reinforced by the on-chain side. Large holders are keeping tokens close to sell buttons rather than putting them in cold storage, as evidenced by the steady increase in exchange reserves
Positive netflows indicate distribution rather than accumulation. The slight increase in active addresses does not necessarily indicate bullish participation. It frequently refers to bots’ short-term speculation or repositioning ahead of volatility. Because it raises the immediate circulating pressure in a structure that is already fragile, the addition of 1.8 billion SHIB in a single day is significant.
The opposite scenario — declining reserves, persistent outflows and price recovery of at least the 50 EMA with follow-through — would be necessary for SHIB to truly change course. All of that is not yet taking place. So, what can investors anticipate going forward? More chop, unsuccessful breakouts and the ongoing danger of another leg down in the event that overall market sentiment declines
Dead cat bounces are common on assets such as these, so a short-term bounce is always possible. However, betting on a trend reversal without structural confirmation is just wishful thinking. SHIB continues to be a high-risk supply-heavy asset until exchange balances clearly reverse and prices begin to hold above important averages. The data currently shows no signs of recovery.
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