The Shiba Inu market is experiencing pressure from 84 trillion tokens held in exchange reserves, which limits price growth and poses risks to stability.
Impact of Reserves on SHIB Price
Large SHIB reserves on exchanges represent immediate liquidity but can threaten price stability. These reserves are likely to be sold during market downturns, creating a situation where sharp sell-offs become more probable.
Technical Analysis of SHIB
The price of SHIB is showing a descending triangle pattern with diminishing trading volume, indicating a risk of downside if support is breached. Current trading levels are at 0.00001244 USDT, with resistance between 0.00001600 and 0.00001800 USDT. Indicators confirm a neutral trend.
Market Outlook
The current state of the SHIB market remains range-bound with no decisive breakout. The market may experience a relief rally if trading volume increases above consolidation levels, but potential upside remains limited due to existing reserves.
Overall prospects for SHIB depend on the decline of token reserves. Without changes in this area, structural barriers will continue to hinder sustainable price growth.
