Over 2 trillion tokens have hit exchanges throughout May, combined with a developing bear flag pattern, this shift threatens bullish SHIB price forecasts and signals caution ahead.
While most altcoins have continued their rise since the mid-April market bottom, Shiba Inu has been sidelined in the “best crypto to buy” conversation, falling over 20% throughout May.
Data from Santiment shows that the Shiba Inu supply on exchanges has increased from 139 trillion to $141 trillion over the past month in what appears to be a new uptrend.
SHIB supply on exchanges through May. Source: Santiment.
With fewer traders adopting a HODL strategy, the SHIB price may be subject to higher levels of volatility as more turn to short-term speculative trading.
SHIB Price Analysis: What Do These Traders Know?
This strategy shift comes amid a bearish flag pattern, developing since the mid-April market bottom—a potential brief pause before the bearish momentum continues.
SHIB / USDT 1-week chart, bearish flag pattern. Source: TradingView / Binance.
The month-long price decline has pushed a retest of the pattern’s lower support, a key level that could give way to a pattern breakdown.
If breached, SHIB risks a 60% decline to the 1.618 Fibonacci level at $0.0000058, potentially wiping out all of its 2024 gains.
Momentum indicators currently hang in the balance. The RSI trends sideways just below the neutral 50 mark at 46—sellers dominate, but not decisively.
The MACD also widens its lead above the signal line after a recent golden cross, although only marginally, it supports the formation of a longer-term uptrend despite short-term bearishness.
In the near term, the 0.618 Fib level at $0.000013 is a key support to watch.
A strong bounce could send the SHIB price up 35%, back toward the flag’s upper resistance around $0.00002, invalidating the pattern if it breaks out above.
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The post Shiba Inu Price Prediction: Is a SHIB Collapse Coming? 2 Trillion Tokens Flood Exchanges appeared first on Cryptonews.
