Foreign media reports that despite a recent decline in exchange reserves, Shiba Inu (SHIB) has not seen any improvement in its price performance. Market attention has shifted to a key support area, which may determine whether SHIB stabilizes in the short term or continues to decline.
The article points out that SHIB's overall trend weakened after breaking below a rising support line that had held for several months. The price subsequently attempted to return above the breached area but was again rejected, indicating that the previous support level has now become a new resistance level. Until this structure is reversed, sellers remain in control.
Binance reserves continue to decline
On-chain data shows that Binance's SHIB reserves continue to decrease, indicating a significant amount of tokens being transferred out of the exchange. Generally, a decrease in exchange balances reduces short-term selling pressure and is often seen as a positive signal in the medium to long term.
However, the article argues that declining reserves alone are insufficient to drive a price rebound. The current market lacks stronger new buying interest, which has not yet offset the overall weak trend. In other words, while supply-side pressures have eased somewhat, demand has not strengthened accordingly.
Key support levels are attracting attention.
Analysts are closely watching the current support area for three main reasons. First, it's a significant demand zone on the chart, having previously attracted buying and prevented further declines. If this level provides support again, SHIB might have another opportunity to test the upper resistance.
- Current prices are near key demand areas.
- The area previously breached still poses upward pressure.
- The decline in exchange reserves has not yet translated into a rebound.
Secondly, the SHIB index is currently maintaining a series of lower highs and lower lows, indicating that the overall downward structure has not yet ended. The multiple rebounds over the past few weeks have failed to form a clear trend reversal, with prices falling back each time they approached the resistance zone.
Multiple rebounds have been thwarted.
The article also mentioned that SHIB repeatedly attempted to recover the previously lost support zone, but failed each time. This repeated setback indicates that selling pressure remains significant above, and also reduces the space for a bullish recovery.
If buying pressure fails to push prices back above this area, the short-term rebound may continue to be limited. Conversely, if the current support level is breached, the market could face a faster decline as some holders may choose to exit.
Overall, SHIB is in a sensitive position. On the one hand, declining exchange reserves indicate a marginal easing of selling pressure; on the other hand, the price structure remains weak. Foreign media believe that SHIB still faces the risk of further declines before regaining key resistance levels.
