Market Performance and Exchange Dynamics
Shiba Inu (SHIB) has experienced a price decline of 10.13% over the past seven days. This downturn has occurred despite significant outflows of SHIB tokens from cryptocurrency exchanges. On November 15, approximately 125 billion SHIB tokens were withdrawn from centralized exchanges, according to data provided by CryptoQuant. Despite this substantial reduction in available tokens on exchanges, the price of SHIB did not see a recovery. Instead, the token fell to $0.00000895 on November 15 and further declined to $0.0000086 on November 16. Currently, SHIB is trading around $0.00000903, reflecting a 10.13% loss over the last week and a 1.06% decrease in the past 24 hours. A decrease in exchange supply typically suggests reduced selling pressure, however, SHIB has not yet responded with a price rebound.
Exchange reserves for SHIB have shown a downward trend throughout November. Between November 1 and November 16, exchange reserves decreased from 82.03 trillion SHIB to 81.77 trillion SHIB. On-chain data specifically highlights that on November 15, 125 billion SHIB tokens were removed from exchanges, causing reserves to drop from 81.815 trillion to 81.693 trillion. This significant outflow occurred on a day when the price was also declining, which is an unusual pattern when such a large volume is present on exchange platforms. While reserves saw a minor recovery to 81.77 trillion the following day, the overall trend indicates a continuous reduction in SHIB available on exchanges. Since the beginning of November, approximately 260 billion SHIB have been withdrawn from exchanges. The decrease in available tokens on exchanges theoretically suggests fewer tokens are available for immediate sale, but this has not yet translated into price support.
Technical Indicators Signal Bearish Sentiment
Shiba Inu has been trading within a downtrend since the beginning of October. The cryptocurrency is currently priced near $0.000008758, trading below the 20-period simple moving average (SMA). The SMA is exhibiting a downward slope, and it has repeatedly acted as resistance, rejecting multiple attempts at recovery in recent weeks.
The current price action is situated near the lower boundary of a short-term trading range. Key support levels are identified within the $0.000009 to $0.00001 price zone. A sustained close below this range could indicate further downward price movement. The Relative Strength Index (RSI) is currently at 36, which suggests weak momentum but does not signify an oversold condition. Concurrently, the MACD lines are positioned close to the zero mark, signaling mild bearish pressure in the market.
Unless SHIB manages to reclaim the 20-SMA, the prevailing trend is likely to remain weak. Market participants are closely observing the cryptocurrency for signs of either consolidation or another downward price movement.