- SHIB’s price and active transacting wallets have dropped significantly over the last few weeks
- Memecoin’s exchange reserves hit a weekly high, signaling mounting selling pressure in the market
Shiba Inu has recorded a steep decline in network activity over the last 24 hours, according to CryptoQuant. In fact, SHIB token transfers have fallen by up to 79.55% on the charts – Hinting at a steep fall in trading volume.
Similarly, SHIB’s active transacting wallet addresses have fallen by 33.68%. For the memecoin, this could mean a lack of activity and low demand across the network.
SHIB’s exchange reserves surge
Despite the slowdown in transactions, Shiba Inu’s exchange reserves surged to a new weekly high on the charts. This means that more SHIB tokens are being deposited on exchanges, likely for selling.
Ordinarily, surges in exchange reserves typically mean a hike in selling pressure as market participants prepare to offload their holdings. To put it plainly, the combination of declining network activity and rising reserves paints a bearish picture for Shiba Inu’s price in the short term.
Source: CryptoQuant
Key price levels to watch
From a technical standpoint, SHIB’s overall structure still remains bearish though. At the time of writing, the memecoin was testing critical support zones, with $0.00001223 acting as a key level. If this support fails, SHIB could slide further to test $0.00001095 as a zone of demand.
However, if selling pressure persists, breaking below this level could lead to further downside movement. With the stochastic RSI still within the overbought zone, the chances of a successful reversal will narrow further.
Source: TradingView
SHIB’s next move depends on how market participants respond to these market conditions. If buying activity picks up at key support zones, a short-term rebound could be on the cards.
However, with selling pressure intensifying and exchange reserves rising, the likelihood of further decline will remain high. Unless demand improves.
For now, traders and investors should closely monitor $0.00001223 and $0.00001095 as the key price levels that could determine SHIB’s next move.
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