Shiba Inu Nears Monthly High, Yet Two On-Chain Red Flags Threaten a Dip

Top meme coin Shiba Inu (SHIB) has surged over the past week, inching closer to its one-month high target of $0.00001408. 

However, fresh on-chain signals suggest the momentum may not last, as market participants appear to be taking advantage of the surge to offload their holdings for quick gains.

SHIB Climbs, But On-Chain Data Points to Rising Sell Pressure

According to data from Glassnode, SHIB’s exchange balances have skyrocketed in the past week, hitting a 30-day high of 156.47 trillion on September 11. 

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Exchange balance refers to the total number of tokens held in centralized trading platforms. When these balances spike during a price rally, it signals that holders are moving their tokens from private wallets to exchanges, intending to sell. 

Therefore, SHIB’s sharp increase in exchange supply over the past few days suggests that traders are capitalizing on the recent upswing to lock in profits. The heightened selling pressure could prevent the meme coin from maintaining its rally and make a near-term pullback more likely.

Moreover, whale activity around SHIB has noticeably slowed, according to Nansen. Information from the on-chain data provider reveals that the balance of high-value wallets holding SHIB tokens worth more than $1 million has dropped by 6% in the past seven days. 

A decline in whale holdings is interpreted as a bearish signal, as it suggests that deep-pocketed investors, who typically provide the strongest price support, are distributing rather than accumulating. 

This trend could also trigger retail SHIB traders to sell, amplifying the downside pressure on the token.

SHIB Nears $0.00001408, But Sell Pressure Could Drag Price Lower

The rise in exchange balances and the drop in whale activity form two significant red flags for SHIB’s near-term outlook. If these continue, SHIB’s current rally could lose momentum, leading to a price decline toward $0.00001187.

However, if buy-side pressure strengthens, the meme coin could revisit its monthly high of $0.00001408.