Shiba Inu's holdings on centralized exchanges are approaching a critical level, teetering just above the $400 million mark. Recent on-chain data shows that the total dollar value of SHIB tokens kept on exchanges stands around $414.8 million. This number is on track to dip below $400 million if the current market trends persist.
But the drop in exchange reserves isn’t driven by massive token withdrawals as one might expect. Instead, it primarily stems from SHIB’s declining price, which has weakened its overall dollar valuation. Unlike scenarios where fewer tokens on exchanges signal bullish sentiment, here it reflects the token’s broader devaluation. SHIB is trading below its annual highs, at roughly $0.0000048 per token. Slight price fluctuations could push the exchange reserves’ value under the $400 million threshold without any significant movement of coins off exchanges.
The token’s price recently failed to hold above a key resistance level despite a surge in trading volume. SHIB now hovers near its 20-day and 50-day exponential moving averages, with the 100-day EMA at $0.0000050 acting as immediate resistance. This struggle to maintain momentum suggests the market remains cautious despite previous spikes in activity.
Market reaction: SHIB price retreated after failing to stay above resistance, signaling continued volatility.
