Shiba Inu Shatters Bullish Pattern as Exchange Supply Drops 1%—Here’s Why It Matters

Shiba Inu just ripped through a key bullish formation—and the timing couldn’t be more ironic. While crypto bros were busy meme-trading, exchange supply quietly bled out. Who needs fundamentals when you’ve got scarcity, right?

Supply crunch or smoke and mirrors? The 1% dip in exchange reserves might look tiny, but in the casino we call crypto, even a whiff of scarcity sends degens into a frenzy. Never mind that most couldn’t explain liquidity dynamics if their moon bags depended on it.

So where’s the price headed next? If history’s any guide—and let’s be honest, in crypto it never is—reduced availability plus meme hype usually equals volatility soup. Buckle up, or better yet, grab some popcorn while the 'whales' play their usual games.

Exchange Supply Shrinks, Giving Bulls More Room

Whenever an asset breaks out of a bullish pattern, one of the first metrics to watch is exchange reserves — because they show how much supply could be sold instantly.

In SHIB’s case, July 31 balances were 122.54 trillion tokens, dropping to 121.31 trillion by August 11 — a nearly 1% decline. This signals reduced sell pressure, creating favorable conditions for bulls to extend the shiba inu price rally.

What’s worth mentioning is that post the August 11 exchange supply dip to the monthly lows, the shiba inu (SHIB) price started surging. Similar supply-led price moves were seen earlier this month: July 24 and August 6.

However, as the price rose, the exchange supply increased slightly from the August lows. Hence, traders should closely monitor SHIB’s balance on exchanges.

: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily crypto Newsletter here.

Spent Coin Age Bands Flash Warning: The One Risk To Rally?

While shrinking exchange reserves are bullish, the rise in Spent Coin Age Bands could counter that momentum. This metric shows when older, previously dormant coins are being moved — often a sign of long-term holders taking profits.

In early August, it hit multi-week lows, but has now climbed to levels last seen on July 24, right before a correction. This uptick could reintroduce supply into the market, offsetting the benefits of low exchange balances.

The chart shows that whenever the Spent Coins Age Band metrics made a local high, a SHIB price correction followed. That’s the current risk to the rally that traders should be mindful of.

Shiba Inu Price Action Balances Bullish Setup and Risk

Price levels now become the battleground where these opposing forces meet. With SHIB trading above $0.00001368, the breakout is intact. The most heartening thing about the SHIB price action is that it is breaking out of the symmetrical triangle. A push past $0.00001438 WOULD lend more strength to the breakout.

Next resistance levels lie at $0.00001469 and $0.00001518, with a potential run to $0.00001599 if momentum holds. And even though the Spent Coins and Exchange Supply metrics are at loggerheads, the increase in the bullish power, courtesy of the Bull-Bear Indicator, might validate the possibility of an upmove.

The invalidation zone is between $0.00001318 and $0.00001224. A drop below this level could allow bears to regain control.