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As Shiba Inu’s reserves on exchanges begin to climb back towards 81 trillion SHIB – a key level for many traders – the token may see an increase in the amount available for sale. This growing supply on exchanges adds to existing challenges for SHIB, creating further concern for traders.

Exchange inflows are piling up

Currently, exchange balances suggest a potential increase in selling activity for SHIB. When large amounts of SHIB are moved to exchanges, it’s often seen as a sign people are more likely to sell rather than hold long-term. Data from CryptoQuant shows exchange reserves are now over 80.5 trillion SHIB, and the amount of SHIB flowing onto exchanges continues to rise.

SHIB’s price chart is already showing signs of weakness, making the current downward trend noteworthy. The token remains below key moving averages and recently lost a supportive pattern called a rising wedge. Indicators suggest a lack of buying strength, and it hasn’t been able to break through resistance around $0.00000620-$0.00000630. The Relative Strength Index (RSI) is nearing oversold levels, which points to continued selling pressure with no strong signals that buying interest will return.

It’s concerning to see reserves growing, but it’s even more worrying when combined with sluggish price movement. Negative trends in how coins are flowing between users and exchanges suggest a potential larger issue. While the overall flow of coins is still slightly negative, we’re seeing a significant increase in deposits, particularly from larger holders. This suggests they may be moving their coins to exchanges, possibly preparing to sell.

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Just because I’m seeing reserves increase doesn’t automatically mean someone’s about to sell everything off. Wallets often move funds around for things like internal transfers, posting collateral for derivatives, or just managing their liquidity. That said, historically, a consistently growing liquid supply *has* been a warning sign – it suggests a higher potential for price drops. So, while not immediate, it’s something I definitely keep an eye on.

Sell-side supply moves up

As an analyst, I’ve been watching the 81 trillion SHIB level closely, and it seems to be a key point. Historically, whenever exchange reserves have climbed to around this level, we’ve seen extended periods of sideways trading or even significant price drops. Basically, when a lot of SHIB ends up on exchanges, it creates a downward pressure, especially if fewer people are actively buying. It’s like there’s more supply available than demand, which can be a warning sign.

From my analysis, understanding the psychology of those trading SHIB is crucial. Unlike traditional assets, SHIB’s price is driven far more by public feeling and short-term trends than by underlying value. We see a lot of enthusiastic, but often quick, buying from individual investors, and that makes it particularly sensitive to shifts in market mood. What this means is that even a small increase in selling pressure can lead to a significant price drop once that initial excitement wears off, because those buyers tend to disappear quickly when things get risky.

There’s still a chance for prices to go up. If exchange reserves stop increasing and SHIB can hold its support level between $0.00000540 and $0.00000550, the market could start to recover in the short term. However, if reserves continue to rise above 81 trillion and the technical indicators worsen, SHIB could face another extended period of falling prices due to too much supply and not enough demand.

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2026-05-26 14:59