Shiba Inu faces technical resistance despite falling exchange reserves

Shiba Inu (SHIB) is experiencing complex market movements characterized by rising open interest and declining exchange reserves. On August 14, open interest positions rose from $46.54 million to $52.79 million, signaling a 13.4% increase in speculative volume alongside a 4.03% price uptick.

Despite this momentum, technical analysis suggests a bearish structure on the 1-day timeframe. The token has fallen approximately 21.4% in three weeks, with recent price action testing an overhead supply zone. Indicators such as the Chaikin Money Flow (CMF) have remained below -0.05 for much of August, suggesting significant capital outflows.

Data from CryptoQuant shows that SHIB balances on centralized exchanges have dropped to 87.3 trillion tokens, a significant decrease from 175 trillion in late 2023. While shrinking exchange reserves are often viewed as a bullish signal, SHIB has seen price declines alongside this depletion, suggesting that reduced supply has not translated into increased buying pressure.