Shiba Inu (SHIB) has broken above its descending anchor band on the daily chart, with expanding volume supporting the move as traders watch whether support can hold.

Around 811 billion SHIB were reportedly moved to major exchanges, a flow that could produce selling pressure if holders choose to sell. Resistance sits near $0.000005443, while the bulls' key level at $0.0000052 is holding firm.

The breakout is reshaping SHIB's near-term technical setup, but the exchange inflows introduce a competing supply-side concern for traders.

Anchor Band Break Changes the Technical Structure

The daily chart had shown a prolonged decline beneath a descending red anchor band. Repeated rebounds failed at that band, keeping a sequence of lower highs and lower lows intact. That structure changed once buyers pushed decisively above the resistance zone.

CW (@CW8900) said SHIB had broken the anchor band and turned bullish. The chart supports that reading through its latest vertical breakout candle, and its indicator panel shows bullish trend and volume signals alongside an active setup.

The breakout followed consolidation near the lower end of the recent range. Buyers then accelerated, pushing price through the marked yellow resistance levels and shifting the immediate structure from rejection toward attempted continuation.

Breakouts from extended downtrends are watched closely by technical traders precisely because they often fail: moves without follow-through frequently stall at the same resistance that capped earlier rebounds. That is why the behavior around the broken band matters more than the breakout candle itself.

However, the breakout must be followed up before a longer-term trend reversal can be validated. A bullish trend would lose strength if price returned below the anchor band, while a successful retest could instead establish that former resistance as fresh support.

Momentum Gains Strength From Higher Trading Activity

The chart records a sharp volume expansion during the late-July advance. That surge accompanied the strongest upward price movement shown in the recent structure, indicating heavier participation during the breakout phase rather than quiet price movement.

At the time of writing, SHIB was trading near $0.000005443 after a 3.63% daily gain, according to data from CoinMarketCap. Its displayed 24-hour volume increased by more than 134%, reaching hundreds of millions, while volume relative to market capitalization stood near 11.76% in the provided data.

Price had rallied slightly higher to around $0.0000052 from the $0.0000062 zone. It was later rejected and went back to the $0.0000056 zone. The latest price action therefore reflects consolidation after an unusually sharp upward move.

Whether elevated volume persists in the sessions after the initial spike is one of the markers analysts use to separate genuine continuation from short-lived breakout moves, alongside the price levels themselves.

The $0.0000052 area remains an important reference for the bullish structure, while $0.0000055 to $0.00000575 forms the immediate recovery zone. Reclaiming the upper boundary could place the recent $0.0000062 peak back into focus.

Exchange Flows Create a Separate Supply Test

Compass Investments reported that about 811 billion SHIB entered centralized exchange wallets. The reported transfers included major platforms such as Binance and Coinbase. Such movements can increase the number of tokens available for trading and potential selling.

Tracking exchange flows is a standard on-chain analysis method: because tokens held on centralized platforms are typically one step closer to sale, analysts treat large inflows as a possible supply signal and large withdrawals to self-custody wallets as a possible sign of longer-term holding.

The reported amount equals roughly 0.14% of the displayed circulating supply. That proportion reflects SHIB's supply structure: the Ethereum-based token, launched in 2020 as a dog-themed meme project, has a circulating supply measured in the hundreds of trillions of tokens. The figure remains relatively small against the overall supply base, though concentrated deposits can still affect short-term liquidity conditions.

Compass Investments interpreted the transfers as possible profit-taking by longer-term holders. Yet exchange deposits alone do not confirm that selling has occurred. Tokens can also move between custody arrangements or prepare for future trading.

The key test is whether the exchange inflows coincide with aggressive selling and weaker bids. Rising deposits alongside falling support would strengthen the distribution argument, while stable prices despite those transfers would suggest buyers are absorbing the available supply. That distinction matters when interpreting exchange data alongside price action.

Source: Crypto Front News