Shiba Inu (SHIB) September recovery is starting to weaken as more SHIB tokens are moving onto crypto exchanges, signaling that some holders may be preparing to sell.
The coin has gained 12% over the past month, trading at $0.000005788. Meanwhile, recent on-chain data shows that average SHIB deposits to exchanges increased by 1.92% over 24 hours to about 500.12 billion tokens. The 10 largest deposits totaled around 13.91 billion SHIB, while total deposits rose by 2.58%.
This comes after SHIB failed to stay above $0.0000060, raising questions about whether its recent recovery can continue.
However, higher exchange deposits do not automatically mean a major sell-off is coming. SHIB withdrawals from exchanges are also increasing, and overall netflow remains negative. This means more SHIB is leaving exchanges than entering them.
When tokens are moved to exchanges, they become easier to trade or sell. As a result, rising exchange deposits can sometimes signal increased selling pressure.
The rise in SHIB deposits suggests more tokens are moving to trading platforms. The 10 largest deposits, totaling about 13.91 billion SHIB, also show that some large transfers are taking place.
Still, these deposits do not necessarily mean investors are selling. SHIB can also be moved to exchanges for trading, liquidity, or other reasons.
SHIB’s exchange withdrawals provide a different signal. Average withdrawals increased by 2.22%, while the 10 largest withdrawals rose by 2.58%.
Since netflow remains negative, more SHIB is still leaving exchanges than entering them. So, despite the rise in deposits, there is not yet clear evidence that investors are heavily moving SHIB onto exchanges to sell.
The main concern is that SHIB’s price is weakening while these mixed exchange flows are taking place.
SHIB is trading around $0.000005782 after once again failing to break above the $0.0000060–$0.0000062 range.
The drop has brought SHIB back to its 200-day moving average, which is around $0.0000053–$0.0000058. This level is important because SHIB recently moved above it for the first time in months.
The current decline could simply be a test of this breakout rather than a full reversal, as long as buyers defend the $0.0000053–$0.0000058 area.
However, the recovery has not been confirmed yet. SHIB needs to move back above $0.0000059 before it can make another attempt at $0.0000061–$0.0000062. A sustained move above that level would show that buyers are becoming stronger again.
On the other hand, falling below $0.0000053 would weaken the recovery and could lead to further declines.
If SHIB breaks below its 200-day moving average, the next important support area could be around $0.0000051–$0.0000052. Falling below the 200-day moving average would put SHIB back below an important long-term indicator and could increase selling pressure.
Momentum has also weakened. Recent red candles show that buyers are struggling to keep SHIB above $0.0000060.
The RSI has also fallen back toward the mid-50s after approaching overbought levels during the previous rally. Although the RSI is still above 50, the decline shows that SHIB’s recent momentum is cooling.
(adsbygoogle = window.adsbygoogle || []).push({});The latest exchange data does not necessarily mean a major sell-off is coming. More SHIB is still leaving exchanges than entering them, which provides a positive counterpoint to the rising deposits.
Still, rising exchange deposits, repeated rejection near $0.0000060, and the return to the 200-day moving average have made SHIB’s recovery more uncertain.
Until SHIB moves back above these levels, its September recovery remains vulnerable, and a sustained move above $0.0000062 remains uncertain.
