SHIB Momentum Fades as Rising Exchange Supply Raises Profit-taking Concerns

• SHIB momentum fades as rising exchange supply increases profit-taking concerns among holders.
• Recent token burns continue, but weaker demand limits SHIB’s recovery potential.
• Key support sits at $0.00000521, while $0.00000602 remains crucial resistance.

Shiba Inu has started losing steam after two strong monthly gains and is now trading above the $0.00000500 mark. Rising exchange deposits could signal growing profit-taking among holders. Recent burns have reduced supply, but demand remains a major concern. SHIB also faces stronger competition from privacy-focused cryptocurrencies. Traders now need fresh buying pressure to extend the recovery. Without stronger demand, the meme coin could struggle near key resistance.

Rising Exchange Supply Raises Selling Pressure

Shiba Inu recorded another sizable token burn on Monday. The network removed 41.35 million SHIB tokens from circulation. Thursday also saw a burn involving 43.43 million tokens. These burns show continued efforts to reduce available supply. However, burns alone cannot guarantee stronger price performance. SHIB needs sustained demand to support another major advance. On-chain data now presents a more cautious picture.

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