thecryptobasic.com 
Billions worth of Shiba Inu hit exchanges over the weekend amid price weakness but bulls are reaccumulating again.
Shiba Inu is still battling strong selling pressure as its price weakens, but bulls remain resolute in keeping the current support level. On-chain data shows massive amounts of Shiba Inu ($SHIB) tokens flooding into exchanges over the weekend, coinciding with price grappling across the broader crypto market. During this period, its price dropped before a slight rebound in the Asian session on Monday.
Key Points
- Shiba Inu is still battling strong selling pressure as its price weakens, but bulls remain resolute in keeping the current support level.
- $SHIB reserve on exchanges suddenly spiked from 80.93 trillion on February 27 to 81.06 trillion on February 28.
- However, whales withdrew large amounts of Shiba Inu from exchanges, dropping the reserve back to 80.90 trillion on Sunday and to 80.87 trillion at press time.
- Whales increased their accumulation as Shiba Inu approached a key support level around $0.0000050, indicating they are looking to defend the area.
Shiba Inu Exchange Inflow Rallied
CryptoQuant data confirmed this spike over the weekend, as holders appeared to be repositioning. $SHIB reserve on exchanges suddenly spiked from 80.93 trillion on February 27 to 81.06 trillion on February 28.
While this does not confirm immediate selloffs, it shows an increase in sell-side liquidity, as the tokens become easy to liquidate if the negative trend persists. However, this sudden spike in selling pressure was immediately overturned as bulls stepped in to buy the dip.
For context, on-chain data confirmed that on Sunday, whales withdrew large amounts of Shiba Inu from exchanges, dropping the reserve back to 80.90 trillion. This figure has continued to drop today, further reducing to 80.87 trillion at press time.
Notably, this dip buying suggests whales still believe in the token’s long-term price direction. Also, further data indicates that they increased this accumulation spree as Shiba Inu approached a key support level around $0.0000050.
$SHIB Shrinks Under Pressure, but Optimism Remains
Meanwhile, the broader market uncertainty continues to dictate $SHIB’s mood. The renewed conflict between Iran and Israel spurred a crypto market bloodbath, with the meme coin dropping to $0.0000054 before recovering. As crossfire air strikes persisted, Shiba Inu dropped further, like other digital assets, with a 4% correction on Sunday.
Despite this, it still holds above a key support level at $0.0000050, an area it tested during the February 6 market capitulation. With a slight 1% recovery earlier during the Asian session on Monday, proponents remain optimistic that this support will hold. The positive exchange reserve data further boosts this sentiment.
Looking forward, trading volume and most other key indicators remain bearish. $SHIB also trades below all major moving averages, reinforcing the weak price action. Nonetheless, holding this support sustainably in the face of all these events reflects sheer strength.
Analysis also suggests that the token could make a comeback from this support when market conditions recover. Immediate targets are an over 3x rally to $0.00001678, followed by further moves to higher resistance levels.
